ML Analysis — PROVIDENCE SEASIDE HOSPITAL
CCN 381303 | 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.
53
/ 100 (C)
Financial Health6/25
RCM Upside19/25
Market Position14/20
Demand Defensibility6/15
Operational Efficiency8/15
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)
-10.6%
R²=0.34 | n=4,907 | Grade B | Actual: -17.8%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-38.9%, 17.7%]. P36 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Expense/Bed | 2873006.000 | -0.1498 | Higher Expense/Bed decreases predicted margin | |
| Revenue/Bed | 2439000.667 | +0.1200 | Higher Revenue/Bed increases predicted margin | |
| State Peer Margin | -0.081 | -0.0264 | Lower State Peer Margin decreases predicted margin | |
| Log(Beds) | 3.497 | -0.0204 | Lower Log(Beds) decreases predicted margin | |
| Bed Count | 33.000 | +0.0181 | Higher Bed Count increases predicted margin |
Turnaround: 32%Turnaround possible (32%) but uncertain. Margin improvement depends on improving Expense/Bed.
Rural/Critical Access
Archetype
51.2%
Distress Risk
$7.0M
RCM Opportunity
C
Opportunity Grade
-9.1%
Projected Margin
Cluster: Rural/Critical Access
Percentile within cluster: P29. 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%
OR distress rate: 65.0%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.400 | +0.117 | ▲ risk |
| Medicaid Day Pct | 0.026 | -0.063 | ▼ risk |
| Revenue Per Bed | 2439000.667 | -0.051 | ▼ risk |
| Net To Gross Ratio | 0.473 | +0.046 | ▲ risk |
| Medicare Day Pct | 0.577 | +0.043 | ▲ risk |
| Beds | 33.000 | -0.015 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $7.0M
Current margin: -17.8%
Projected margin: -9.1%
Grade: C
Comps: 28
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 | 0.396 | 0.685 | 28.9% | $4.3M | 50% | 24mo |
| Occupancy Improvement | 0.400 | 0.626 | 22.6% | $1.5M | 55% | 24mo |
| Net-to-Gross Ratio Improvement | 0.473 | 0.601 | 12.9% | $1.2M | 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 | 30.6 | [25.0, 75.0] | P62 | 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. |