ML Analysis — NATIONWIDE CHILDRENS HOSP TOLEDO LLC
CCN 363309 | Clustering + Distress + RCM Opportunity
🛡️ Public data only — no PHI permitted on this instance.
Investability Score
Speculative — only pursue if turnaround thesis is strong and entry multiple reflects risk.
42
/ 100 (D)
Financial Health16/25
RCM Upside5/25
Market Position8/20
Demand Defensibility6/15
Operational Efficiency7/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
Risk Factors:
- Small facility (<50 beds) — limited scale
Catalysts:
- Limited competition supports pricing power
Margin Prediction (Trained Ridge Model)
0.9%
R²=0.34 | n=4,907 | Grade B | Actual: 28.0%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-27.4%, 29.2%]. P64 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Expense/Bed | 784948.659 | +0.1075 | Higher Expense/Bed increases predicted margin | |
| Revenue/Bed | 1090830.342 | -0.0682 | Lower Revenue/Bed decreases predicted margin | |
| State Peer Margin | -0.004 | +0.0313 | Higher State Peer Margin increases predicted margi | |
| Net-to-Gross | 0.218 | -0.0168 | Lower Net-to-Gross decreases predicted margin | |
| Bed Count | 41.000 | +0.0168 | Higher Bed Count increases predicted margin |
nan%
Distress Risk
$1.2M
RCM Opportunity
D
Opportunity Grade
30.8%
Projected Margin
Distress Analysis
Risk: Unknown
National distress rate: 49.3%
OH distress rate: 37.3%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.680 | -0.144 | ▼ risk |
| Medicare Day Pct | nan | +nan | ▼ risk |
| Net To Gross Ratio | 0.219 | -0.067 | ▼ risk |
| Revenue Per Bed | 1090830.341 | +0.029 | ▲ risk |
| Beds | 41.000 | -0.014 | ▼ risk |
| Medicaid Day Pct | 0.090 | +0.001 | ▲ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $1.2M
Current margin: 28.0%
Projected margin: 30.8%
Grade: D
Comps: 110
Gap analysis vs P75 peers with 60% closure assumption. Confidence-weighted by lever implementation difficulty.
| Lever | Current | Benchmark | Gap | Impact | Confidence | Timeline |
|---|---|---|---|---|---|---|
| Net-to-Gross Ratio Improvement | 0.219 | 0.455 | 23.6% | $1.2M | 65% | 18mo |
Predicted RCM Performance (Public Data Only)
B
RCM Grade
Average RCM profile — some improvement opportunities. Standard diligence scope recommended.
| Metric | Predicted | 90% CI | Percentile | Assessment |
|---|---|---|---|---|
| Denial Rate | 25.0% | [2.0%, 25.0%] | P83 | Below average — denial rate suggests RCM improvement opportu |
| Days in AR | 75.0 | [25.0, 75.0] | P83 | Below average — days in ar suggests RCM improvement opportun |
| 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. |