ML Analysis — MCCURTAIN MEMORIAL HOSPITAL
CCN 371342 | 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.
47
/ 100 (C)
Financial Health5/25
RCM Upside20/25
Market Position13/20
Demand Defensibility7/15
Operational Efficiency2/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
Risk Factors:
- Negative operating margin
- Heavy Medicare dependence (>55%)
- Small facility (<50 beds) — limited scale
- Expenses exceed revenue
Catalysts:
- Strong commercial payer base protects revenue
- Limited competition supports pricing power
Margin Prediction (Trained Ridge Model)
-11.7%
R²=0.34 | n=4,907 | Grade B | Actual: -15.8%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-40.0%, 16.6%]. P34 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 769751.840 | -0.1130 | Lower Revenue/Bed decreases predicted margin | |
| Expense/Bed | 891795.720 | +0.0943 | Higher Expense/Bed increases predicted margin | |
| State Peer Margin | -0.088 | -0.0313 | Lower State Peer Margin decreases predicted margin | |
| Log(Beds) | 3.219 | -0.0268 | Lower Log(Beds) decreases predicted margin | |
| Reimbursement Quality | 0.116 | +0.0247 | Higher Reimbursement Quality increases predicted m |
Turnaround: 30%Turnaround possible (30%) but uncertain. Margin improvement depends on improving Revenue/Bed.
Rural/Critical Access
Archetype
49.5%
Distress Risk
$1.4M
RCM Opportunity
C
Opportunity Grade
-8.6%
Projected Margin
Cluster: Rural/Critical Access
Percentile within cluster: P41. 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: Elevated
National distress rate: 49.3%
OK distress rate: 58.1%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Revenue Per Bed | 769751.840 | +0.048 | ▲ risk |
| Medicare Day Pct | 0.599 | +0.047 | ▲ risk |
| Medicaid Day Pct | 0.046 | -0.043 | ▼ risk |
| Net To Gross Ratio | 0.325 | -0.019 | ▼ risk |
| Beds | 25.000 | -0.017 | ▼ risk |
| Occupancy Rate | 0.532 | -0.007 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $1.4M
Current margin: -15.8%
Projected margin: -8.6%
Grade: C
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 | 0.355 | 0.418 | 6.3% | $941K | 50% | 24mo |
| Net-to-Gross Ratio Improvement | 0.325 | 0.525 | 20.0% | $450K | 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 | 32.3 | [25.0, 75.0] | P71 | 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. |