ML Analysis — WAGONER HOSPITAL AUTHORITY
CCN 370166 | 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.
45
/ 100 (D)
Financial Health4/25
RCM Upside19/25
Market Position12/20
Demand Defensibility5/15
Operational Efficiency4/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
Risk Factors:
- Negative operating margin
- Expenses exceed revenue
Catalysts:
- Limited competition supports pricing power
Margin Prediction (Trained Ridge Model)
-18.5%
R²=0.34 | n=4,907 | Grade B | Actual: -24.0%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-46.8%, 9.8%]. P22 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 219019.920 | -0.1899 | Lower Revenue/Bed decreases predicted margin | |
| Expense/Bed | 271657.180 | +0.1707 | Higher Expense/Bed increases predicted margin | |
| Medicaid % | 0.581 | -0.0595 | Higher Medicaid % decreases predicted margin | |
| State Peer Margin | -0.088 | -0.0313 | Lower State Peer Margin decreases predicted margin | |
| Reimbursement Quality | 0.106 | +0.0275 | Higher Reimbursement Quality increases predicted m |
Turnaround: 21%Low turnaround probability (21%). Structural disadvantages in Revenue/Bed and Expense/Bed.
Safety-Net/Medicaid Heavy
Archetype
66.2%
Distress Risk
$5.8M
RCM Opportunity
A
Opportunity Grade
2.4%
Projected Margin
Cluster: Safety-Net/Medicaid Heavy
Percentile within cluster: P48. High Medicaid dependence creates reimbursement risk. Assess DSH payments and state expansion status.
Nearest Peers
| Hospital | State | Beds |
|---|---|---|
| WESTERN PEAKS SPECIALTY HOSPITAL | UT | 59 |
| HOSPITAL MENONITA AIBONITO | PR | 129 |
| TOPPENISH COMMUNITY HOSPITAL | WA | 47 |
| MINERAL COMMUNITY HOSPITAL | MT | 25 |
| BANNER UNIVERSITY MED CENTER SOUTH | AZ | 132 |
| NORTH COLORADO MEDICAL CENTER | CO | 202 |
Distress Analysis
Risk: High
National distress rate: 49.3%
OK distress rate: 58.1%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Medicaid Day Pct | 0.581 | +0.491 | ▲ risk |
| Occupancy Rate | 0.353 | +0.160 | ▲ risk |
| Revenue Per Bed | 219019.920 | +0.080 | ▲ risk |
| Medicare Day Pct | 0.140 | -0.032 | ▼ risk |
| Beds | 100.000 | -0.007 | ▼ risk |
| Net To Gross Ratio | 0.379 | +0.005 | ▲ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $5.8M
Current margin: -24.0%
Projected margin: 2.4%
Grade: A
Comps: 42
Gap analysis vs P75 peers with 60% closure assumption. Confidence-weighted by lever implementation difficulty.
| Lever | Current | Benchmark | Gap | Impact | Confidence | Timeline |
|---|---|---|---|---|---|---|
| Occupancy Improvement | 0.353 | 0.811 | 45.8% | $3.0M | 55% | 24mo |
| Payer Mix Optimization | 0.279 | 0.464 | 18.5% | $2.8M | 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 | 30.9 | [25.0, 75.0] | P64 | 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. |