ML Analysis — CLINTON MEMORIAL HOSPITAL
CCN 360175 | 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.
50
/ 100 (C)
Financial Health6/25
RCM Upside17/25
Market Position15/20
Demand Defensibility7/15
Operational Efficiency6/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
Risk Factors:
- Negative operating margin
- Low occupancy (<30%) — demand risk
Catalysts:
- Strong commercial payer base protects revenue
- Limited competition supports pricing power
Margin Prediction (Trained Ridge Model)
-7.7%
R²=0.34 | n=4,907 | Grade B | Actual: -1.4%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-36.0%, 20.6%]. P42 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Expense/Bed | 1291046.253 | +0.0451 | Higher Expense/Bed increases predicted margin | |
| Revenue/Bed | 1273353.867 | -0.0427 | Lower Revenue/Bed decreases predicted margin | |
| State Peer Margin | -0.004 | +0.0313 | Higher State Peer Margin increases predicted margi | |
| Bed Utilization Value | 343933.461 | -0.0176 | Lower Bed Utilization Value decreases predicted ma | |
| Medicaid % | 0.233 | -0.0175 | Higher Medicaid % decreases predicted margin |
Turnaround: 37%Turnaround possible (37%) but uncertain. Margin improvement depends on Expense/Bed.
Suburban Community Hospit
Archetype
58.3%
Distress Risk
$6.2M
RCM Opportunity
C
Opportunity Grade
5.1%
Projected Margin
Cluster: Suburban Community Hospital
Percentile within cluster: P86. 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 | 0.270 | +0.237 | ▲ risk |
| Medicaid Day Pct | 0.233 | +0.144 | ▲ risk |
| Medicare Day Pct | 0.210 | -0.020 | ▼ risk |
| Revenue Per Bed | 1273353.867 | +0.018 | ▲ risk |
| Beds | 75.000 | -0.010 | ▼ risk |
| Net To Gross Ratio | 0.354 | -0.007 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $6.2M
Current margin: -1.4%
Projected margin: 5.1%
Grade: C
Comps: 97
Gap analysis vs P75 peers with 60% closure assumption. Confidence-weighted by lever implementation difficulty.
| Lever | Current | Benchmark | Gap | Impact | Confidence | Timeline |
|---|---|---|---|---|---|---|
| Payer Mix Optimization | 0.557 | 0.762 | 20.5% | $3.1M | 50% | 24mo |
| Occupancy Improvement | 0.270 | 0.672 | 40.2% | $2.7M | 55% | 24mo |
| Net-to-Gross Ratio Improvement | 0.354 | 0.393 | 3.9% | $441K | 65% | 18mo |
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 | 27.8 | [25.0, 75.0] | P43 | 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. |