ML Analysis — MERCER COUNTY COMMUNITY HOSPITAL
CCN 360058 | Clustering + Distress + RCM Opportunity
🛡️ Public data only — no PHI permitted on this instance.
Investability Score
Hold / Selective — investigate specific opportunities but be prepared for execution risk.
55
/ 100 (C)
Financial Health8/25
RCM Upside17/25
Market Position15/20
Demand Defensibility8/15
Operational Efficiency8/15
Entry Multiple: 9.5x – 11.5x
Est. MOIC: 2.3x
Risk Factors:
- Negative operating margin
- Small facility (<50 beds) — limited scale
Catalysts:
- Strong commercial payer base protects revenue
- Limited competition supports pricing power
Margin Prediction (Trained Ridge Model)
-2.4%
R²=0.34 | n=4,907 | Grade B | Actual: -0.9%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-30.7%, 25.9%]. P56 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 2089967.381 | +0.0713 | Higher Revenue/Bed increases predicted margin | |
| Expense/Bed | 2107999.691 | -0.0555 | Higher Expense/Bed decreases predicted margin | |
| State Peer Margin | -0.004 | +0.0313 | Higher State Peer Margin increases predicted margi | |
| Reimbursement Quality | 0.296 | -0.0272 | Higher Reimbursement Quality decreases predicted m | |
| Bed Count | 42.000 | +0.0167 | Higher Bed Count increases predicted margin |
Turnaround: 46%Turnaround possible (46%) but uncertain. Margin improvement depends on Revenue/Bed.
Suburban Community Hospit
Archetype
51.0%
Distress Risk
$3.0M
RCM Opportunity
D
Opportunity Grade
2.5%
Projected Margin
Cluster: Suburban Community Hospital
Percentile within cluster: P6. Community hospitals — the largest PE deal category. Focus on RCM improvement and cost optimization at 9-11x.
Nearest Peers
| Hospital | State | Beds |
|---|---|---|
| PROMEDICA HICKMAN HOSPITAL | MI | 58 |
| WATAUGA MEDICAL CENTER | NC | 95 |
| ST LUKES HOSPITAL - EASTON CAMPUS | PA | 29 |
| CULPEPER MEMORIAL HOSPITAL | VA | 70 |
| SOUTHSIDE COMMUNITY HOSPITAL | VA | 80 |
| SPECTRUM HEALTH LUDINGTON | MI | 45 |
Distress Analysis
Risk: High
National distress rate: 49.3%
OH distress rate: 37.3%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.398 | +0.118 | ▲ risk |
| Medicaid Day Pct | 0.016 | -0.072 | ▼ risk |
| Net To Gross Ratio | 0.493 | +0.055 | ▲ risk |
| Revenue Per Bed | 2089967.381 | -0.030 | ▼ risk |
| Beds | 42.000 | -0.014 | ▼ risk |
| Medicare Day Pct | 0.383 | +0.010 | ▲ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $3.0M
Current margin: -0.9%
Projected margin: 2.5%
Grade: D
Comps: 113
Gap analysis vs P75 peers with 60% closure assumption. Confidence-weighted by lever implementation difficulty.
| Lever | Current | Benchmark | Gap | Impact | Confidence | Timeline |
|---|---|---|---|---|---|---|
| Occupancy Improvement | 0.398 | 0.626 | 22.8% | $1.5M | 55% | 24mo |
| Payer Mix Optimization | 0.600 | 0.699 | 9.9% | $1.5M | 50% | 24mo |
Predicted RCM Performance (Public Data Only)
A
RCM Grade
Strong RCM profile — likely low-risk from an operations perspective. Focus diligence on growth thesis.
| Metric | Predicted | 90% CI | Percentile | Assessment |
|---|---|---|---|---|
| Denial Rate | 2.0% | [2.0%, 25.0%] | P0 | Strong — predicted denial rate is in the top third nationall |
| Days in AR | 27.0 | [25.0, 75.0] | P38 | Strong — predicted days in ar is in the top third nationally |
| Clean Claim Rate | 98.0% | [80.0%, 98.0%] | P0 | Strong — predicted clean claim rate is in the top third. |
| Net Collection Rate | 99.5% | [90.0%, 99.5%] | P8 | Strong — predicted net collection rate is in the top third. |