ML Analysis — SHARE MEDICAL CENTER
CCN 371341 | 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.
38
/ 100 (D)
Financial Health4/25
RCM Upside18/25
Market Position10/20
Demand Defensibility2/15
Operational Efficiency4/15
Entry Multiple: 6.0x – 8.5x
Est. MOIC: 1.5x
Risk Factors:
- Negative operating margin
- Heavy Medicare dependence (>55%)
- Small facility (<50 beds) — limited scale
- Low occupancy (<30%) — demand risk
- Expenses exceed revenue
Catalysts:
- Limited competition supports pricing power
Margin Prediction (Trained Ridge Model)
-15.3%
R²=0.34 | n=4,907 | Grade B | Actual: -45.5%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-43.6%, 13.0%]. P27 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 375091.240 | -0.1681 | Lower Revenue/Bed decreases predicted margin | |
| Expense/Bed | 545775.600 | +0.1369 | Higher Expense/Bed increases predicted margin | |
| Reimbursement Quality | 0.067 | +0.0388 | Higher Reimbursement Quality increases predicted m | |
| State Peer Margin | -0.088 | -0.0313 | Lower State Peer Margin decreases predicted margin | |
| Bed Utilization Value | 37858.524 | -0.0277 | Lower Bed Utilization Value decreases predicted ma |
Turnaround: 25%Low turnaround probability (25%). Structural disadvantages in Revenue/Bed and Expense/Bed.
Rural/Critical Access
Archetype
62.5%
Distress Risk
$6.8M
RCM Opportunity
A
Opportunity Grade
27.4%
Projected Margin
Cluster: Rural/Critical Access
Percentile within cluster: P94. Rural/small hospitals face structural headwinds. Evaluate CAH conversion, telehealth, and rural health funding.
Nearest Peers
| Hospital | State | Beds |
|---|---|---|
| BRECKINRIDGE HEALTH INC | KY | 25 |
| SHERIDAN MEMORIAL HOSPITAL | MT | 19 |
| DAYTON GENERAL HOSPITAL | WA | 25 |
| BLUE MOUNTAIN HOSPITAL DISTRICT | OR | 16 |
| COMMUNITY HOSPITAL | WY | 25 |
| CARLE EUREKA HOSPITAL | IL | 25 |
Distress Analysis
Risk: High
National distress rate: 49.3%
OK distress rate: 58.1%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.101 | +0.394 | ▲ risk |
| Medicare Day Pct | 0.803 | +0.082 | ▲ risk |
| Revenue Per Bed | 375091.240 | +0.071 | ▲ risk |
| Net To Gross Ratio | 0.464 | +0.042 | ▲ risk |
| Medicaid Day Pct | 0.053 | -0.036 | ▼ risk |
| Beds | 25.000 | -0.017 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $6.8M
Current margin: -45.5%
Projected margin: 27.4%
Grade: A
Comps: 83
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 | 0.143 | 0.418 | 27.4% | $4.1M | 50% | 24mo |
| Occupancy Improvement | 0.101 | 0.503 | 40.2% | $2.7M | 55% | 24mo |
| Net-to-Gross Ratio Improvement | 0.464 | 0.525 | 6.1% | $67K | 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 | 37.3 | [25.0, 75.0] | P80 | 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 | 98.9% | [90.0%, 99.5%] | P3 | Strong — predicted net collection rate is in the top third. |