ML Analysis — INSPIRE SPECIALTY HOSPITAL - MW CITY
CCN 372012 | 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 Upside17/25
Market Position15/20
Demand Defensibility6/15
Operational Efficiency4/15
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)
-14.7%
R²=0.34 | n=4,907 | Grade B | Actual: -0.8%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-43.0%, 13.6%]. P28 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 290788.064 | -0.1799 | Lower Revenue/Bed decreases predicted margin | |
| Expense/Bed | 293133.193 | +0.1680 | Higher Expense/Bed increases predicted margin | |
| State Peer Margin | -0.088 | -0.0313 | Lower State Peer Margin decreases predicted margin | |
| Bed Utilization Value | 144199.013 | -0.0242 | Lower Bed Utilization Value decreases predicted ma | |
| Log(Beds) | 3.434 | -0.0218 | Lower Log(Beds) decreases predicted margin |
Turnaround: 26%Low turnaround probability (26%). Structural disadvantages in Revenue/Bed and Expense/Bed.
Suburban Community Hospit
Archetype
54.7%
Distress Risk
$286K
RCM Opportunity
D
Opportunity Grade
2.4%
Projected Margin
Cluster: Suburban Community Hospital
Percentile within cluster: P59. 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 |
|---|---|---|---|
| Medicaid Day Pct | 0.172 | +0.083 | ▲ risk |
| Revenue Per Bed | 290788.065 | +0.076 | ▲ risk |
| Net To Gross Ratio | 0.480 | +0.050 | ▲ risk |
| Occupancy Rate | 0.496 | +0.027 | ▲ risk |
| Beds | 31.000 | -0.016 | ▼ risk |
| Medicare Day Pct | 0.289 | -0.007 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $286K
Current margin: -0.8%
Projected margin: 2.4%
Grade: D
Comps: 86
Gap analysis vs P75 peers with 60% closure assumption. Confidence-weighted by lever implementation difficulty.
| Lever | Current | Benchmark | Gap | Impact | Confidence | Timeline |
|---|---|---|---|---|---|---|
| Occupancy Improvement | 0.496 | 0.536 | 4.0% | $267K | 55% | 24mo |
| Net-to-Gross Ratio Improvement | 0.480 | 0.498 | 1.8% | $19K | 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 | 28.2 | [25.0, 75.0] | P45 | 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. |