ML Analysis — GBH - GENEVA
CCN 364054 | 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.
51
/ 100 (C)
Financial Health16/25
RCM Upside5/25
Market Position13/20
Demand Defensibility10/15
Operational Efficiency7/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
Risk Factors:
- Small facility (<50 beds) — limited scale
Catalysts:
- Strong commercial payer base protects revenue
Margin Prediction (Trained Ridge Model)
-4.1%
R²=0.34 | n=4,907 | Grade B | Actual: 24.6%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-32.4%, 24.2%]. P51 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 281538.950 | -0.1812 | Lower Revenue/Bed decreases predicted margin | |
| Expense/Bed | 212370.850 | +0.1780 | Higher Expense/Bed increases predicted margin | |
| Log(Beds) | 2.996 | -0.0320 | Lower Log(Beds) decreases predicted margin | |
| State Peer Margin | -0.004 | +0.0313 | Higher State Peer Margin increases predicted margi | |
| Bed Utilization Value | 221065.926 | -0.0216 | Lower Bed Utilization Value decreases predicted ma |
Suburban Community Hospit
Archetype
42.0%
Distress Risk
$482K
RCM Opportunity
C
Opportunity Grade
33.1%
Projected Margin
Cluster: Suburban Community Hospital
Percentile within cluster: P80. 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: Elevated
National distress rate: 49.3%
OH distress rate: 37.3%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.785 | -0.241 | ▼ risk |
| Medicaid Day Pct | 0.002 | -0.087 | ▼ risk |
| Revenue Per Bed | 281538.950 | +0.077 | ▲ risk |
| Net To Gross Ratio | 0.307 | -0.027 | ▼ risk |
| Beds | 20.000 | -0.017 | ▼ risk |
| Medicare Day Pct | 0.339 | +0.002 | ▲ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $482K
Current margin: 24.6%
Projected margin: 33.1%
Grade: C
Comps: 69
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 | 0.659 | 0.684 | 2.5% | $373K | 50% | 24mo |
| Net-to-Gross Ratio Improvement | 0.307 | 0.472 | 16.5% | $109K | 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 | 27.0 | [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. |