ML Analysis — SUMMIT MEDICAL CENTER
CCN 370225 | 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.
49
/ 100 (C)
Financial Health7/25
RCM Upside17/25
Market Position15/20
Demand Defensibility4/15
Operational Efficiency6/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
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)
-4.9%
R²=0.34 | n=4,907 | Grade B | Actual: -0.3%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-33.2%, 23.4%]. P50 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 4014767.667 | +0.3400 | Higher Revenue/Bed increases predicted margin | |
| Expense/Bed | 4028548.889 | -0.2921 | Higher Expense/Bed decreases predicted margin | |
| Log(Beds) | 2.197 | -0.0506 | Lower Log(Beds) decreases predicted margin | |
| State Peer Margin | -0.088 | -0.0313 | Lower State Peer Margin decreases predicted margin | |
| Net-to-Gross | 0.131 | -0.0266 | Lower Net-to-Gross decreases predicted margin |
Turnaround: 41%Turnaround possible (41%) but uncertain. Margin improvement depends on Revenue/Bed.
Suburban Community Hospit
Archetype
42.7%
Distress Risk
$3.4M
RCM Opportunity
C
Opportunity Grade
9.1%
Projected Margin
Cluster: Suburban Community Hospital
Percentile within cluster: P89. 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%
OK distress rate: 58.1%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Revenue Per Bed | 4014767.667 | -0.144 | ▼ risk |
| Occupancy Rate | 0.379 | +0.136 | ▲ risk |
| Net To Gross Ratio | 0.131 | -0.106 | ▼ risk |
| Medicaid Day Pct | 0.002 | -0.087 | ▼ risk |
| Medicare Day Pct | 0.049 | -0.048 | ▼ risk |
| Beds | 9.000 | -0.019 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $3.4M
Current margin: -0.3%
Projected margin: 9.1%
Grade: C
Comps: 15
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 | 0.131 | 0.658 | 52.6% | $2.2M | 65% | 18mo |
| Occupancy Improvement | 0.379 | 0.559 | 18.1% | $1.2M | 55% | 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 | 35.4 | [25.0, 75.0] | P79 | Average — predicted days in ar is near the median. |
| Clean Claim Rate | 98.0% | [80.0%, 98.0%] | P0 | Strong — predicted clean claim rate is in the top third. |
| Net Collection Rate | 98.6% | [90.0%, 99.5%] | P2 | Strong — predicted net collection rate is in the top third. |