ML Analysis — PROVIDENCE ST. VINCENT MEDICAL CTR
CCN 380004 | 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.
59
/ 100 (C)
Financial Health11/25
RCM Upside19/25
Market Position11/20
Demand Defensibility13/15
Operational Efficiency6/15
Entry Multiple: 9.5x – 11.5x
Est. MOIC: 2.3x
Risk Factors:
- Negative operating margin
- Expenses exceed revenue
Catalysts:
- RCM optimization could add 3-5pp margin
- Strong commercial payer base protects revenue
Margin Prediction (Trained Ridge Model)
-9.0%
R²=0.34 | n=4,907 | Grade B | Actual: -6.2%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-37.3%, 19.3%]. P39 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Bed Count | 536.000 | -0.0604 | Higher Bed Count decreases predicted margin | |
| Log(Beds) | 6.284 | +0.0444 | Higher Log(Beds) increases predicted margin | |
| Revenue/Bed | 1873844.907 | +0.0411 | Higher Revenue/Bed increases predicted margin | |
| Expense/Bed | 1990322.026 | -0.0410 | Higher Expense/Bed decreases predicted margin | |
| Reimbursement Quality | 0.339 | -0.0395 | Higher Reimbursement Quality decreases predicted m |
Turnaround: 35%Turnaround possible (35%) but uncertain. Margin improvement depends on improving Bed Count.
Suburban Community Hospit
Archetype
45.7%
Distress Risk
$956K
RCM Opportunity
D
Opportunity Grade
-6.1%
Projected Margin
Cluster: Suburban Community Hospital
Percentile within cluster: P81. Community hospitals — the largest PE deal category. Focus on RCM improvement and cost optimization at 9-11x.
Nearest Peers
| Hospital | State | Beds |
|---|---|---|
| CLARA MAASS MEDICAL CENTER | NJ | 259 |
| PRESENCE SAINTS MARY & ELIZABETH MED | IL | 266 |
| ADVENTIST HEALTH BAKERSFIELD | CA | 254 |
| BRISTOL REGIONAL MEDICAL CENTER | TN | 244 |
| HOLSTON VALLEY HOSP & MED CTR | TN | 286 |
| SPRINGFIELD REGIONAL MEDICAL CENTER | OH | 230 |
Distress Analysis
Risk: Elevated
National distress rate: 49.3%
OR distress rate: 65.0%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.684 | -0.148 | ▼ risk |
| Beds | 536.000 | +0.052 | ▲ risk |
| Medicaid Day Pct | 0.041 | -0.048 | ▼ risk |
| Net To Gross Ratio | 0.452 | +0.037 | ▲ risk |
| Medicare Day Pct | 0.209 | -0.020 | ▼ risk |
| Revenue Per Bed | 1873844.907 | -0.017 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $956K
Current margin: -6.2%
Projected margin: -6.1%
Grade: D
Comps: 831
Gap analysis vs P75 peers with 60% closure assumption. Confidence-weighted by lever implementation difficulty.
| Lever | Current | Benchmark | Gap | Impact | Confidence | Timeline |
|---|---|---|---|---|---|---|
| Occupancy Improvement | 0.684 | 0.807 | 12.3% | $811K | 55% | 24mo |
| Payer Mix Optimization | 0.750 | 0.760 | 1.0% | $145K | 50% | 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 | 25.0 | [25.0, 75.0] | P0 | 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. |