ML Analysis — ST. JOHN BROKEN ARROW
CCN 370235 | 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.
43
/ 100 (D)
Financial Health10/25
RCM Upside13/25
Market Position9/20
Demand Defensibility8/15
Operational Efficiency3/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
Risk Factors:
- Low occupancy (<30%) — demand risk
Catalysts:
- Strong commercial payer base protects revenue
Margin Prediction (Trained Ridge Model)
-13.5%
R²=0.34 | n=4,907 | Grade B | Actual: 3.3%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-41.8%, 14.8%]. P30 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Expense/Bed | 1018255.323 | +0.0787 | Higher Expense/Bed increases predicted margin | |
| Revenue/Bed | 1052747.113 | -0.0735 | Lower Revenue/Bed decreases predicted margin | |
| State Peer Margin | -0.088 | -0.0313 | Lower State Peer Margin decreases predicted margin | |
| Bed Utilization Value | 210789.204 | -0.0220 | Lower Bed Utilization Value decreases predicted ma | |
| Reimbursement Quality | 0.126 | +0.0217 | Higher Reimbursement Quality increases predicted m |
Suburban Community Hospit
Archetype
57.5%
Distress Risk
$4.0M
RCM Opportunity
C
Opportunity Grade
9.4%
Projected Margin
Cluster: Suburban Community Hospital
Percentile within cluster: P69. 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%
OK distress rate: 58.1%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.200 | +0.302 | ▲ risk |
| Medicaid Day Pct | 0.154 | +0.065 | ▲ risk |
| Net To Gross Ratio | 0.241 | -0.057 | ▼ risk |
| Revenue Per Bed | 1052747.113 | +0.031 | ▲ risk |
| Beds | 62.000 | -0.012 | ▼ risk |
| Medicare Day Pct | 0.324 | -0.000 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $4.0M
Current margin: 3.3%
Projected margin: 9.4%
Grade: C
Comps: 65
Gap analysis vs P75 peers with 60% closure assumption. Confidence-weighted by lever implementation difficulty.
| Lever | Current | Benchmark | Gap | Impact | Confidence | Timeline |
|---|---|---|---|---|---|---|
| Occupancy Improvement | 0.200 | 0.675 | 47.5% | $3.1M | 55% | 24mo |
| Net-to-Gross Ratio Improvement | 0.241 | 0.353 | 11.2% | $852K | 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 | 29.7 | [25.0, 75.0] | P57 | 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. |