ML Analysis — ROGUE REGIONAL MEDICAL CENTER
CCN 380018 | Clustering + Distress + RCM Opportunity
🛡️ Public data only — no PHI permitted on this instance.
Investability Score
Buy — solid fundamentals with identifiable value creation levers. Proceed to detailed diligence.
61
/ 100 (B)
Financial Health9/25
RCM Upside19/25
Market Position11/20
Demand Defensibility15/15
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
- Limited competition supports pricing power
Margin Prediction (Trained Ridge Model)
-5.5%
R²=0.34 | n=4,907 | Grade B | Actual: -5.6%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-33.9%, 22.8%]. P48 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 2354813.901 | +0.1083 | Higher Revenue/Bed increases predicted margin | |
| Expense/Bed | 2485725.265 | -0.1021 | Higher Expense/Bed decreases predicted margin | |
| Medicaid % | 0.458 | -0.0446 | Higher Medicaid % decreases predicted margin | |
| Reimbursement Quality | 0.068 | +0.0384 | Higher Reimbursement Quality increases predicted m | |
| Bed Utilization Value | 1840050.696 | +0.0321 | Higher Bed Utilization Value increases predicted m |
Turnaround: 40%Turnaround possible (40%) but uncertain. Margin improvement depends on Revenue/Bed.
Safety-Net/Medicaid Heavy
Archetype
51.1%
Distress Risk
$20.7M
RCM Opportunity
D
Opportunity Grade
-2.8%
Projected Margin
Cluster: Safety-Net/Medicaid Heavy
Percentile within cluster: P61. High Medicaid dependence creates reimbursement risk. Assess DSH payments and state expansion status.
Nearest Peers
| Hospital | State | Beds |
|---|---|---|
| WESTERN PEAKS SPECIALTY HOSPITAL | UT | 59 |
| HOSPITAL MENONITA AIBONITO | PR | 129 |
| TOPPENISH COMMUNITY HOSPITAL | WA | 47 |
| MINERAL COMMUNITY HOSPITAL | MT | 25 |
| BANNER UNIVERSITY MED CENTER SOUTH | AZ | 132 |
| NORTH COLORADO MEDICAL CENTER | CO | 202 |
Distress Analysis
Risk: High
National distress rate: 49.3%
OR distress rate: 65.0%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Medicaid Day Pct | 0.457 | +0.368 | ▲ risk |
| Occupancy Rate | 0.781 | -0.238 | ▼ risk |
| Revenue Per Bed | 2354813.901 | -0.046 | ▼ risk |
| Net To Gross Ratio | 0.298 | -0.032 | ▼ risk |
| Beds | 313.000 | +0.022 | ▲ risk |
| Medicare Day Pct | 0.315 | -0.002 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $20.7M
Current margin: -5.6%
Projected margin: -2.8%
Grade: D
Comps: 12
Gap analysis vs P75 peers with 60% closure assumption. Confidence-weighted by lever implementation difficulty.
| Lever | Current | Benchmark | Gap | Impact | Confidence | Timeline |
|---|---|---|---|---|---|---|
| Net-to-Gross Ratio Improvement | 0.298 | 0.440 | 14.2% | $12.3M | 65% | 18mo |
| Payer Mix Optimization | 0.228 | 0.764 | 53.6% | $8.0M | 50% | 24mo |
| Occupancy Improvement | 0.781 | 0.832 | 5.0% | $332K | 55% | 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. |