ML Analysis — MEMORIAL HOSPITAL
CCN 390101 | 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 Health18/25
RCM Upside7/25
Market Position13/20
Demand Defensibility10/15
Operational Efficiency11/15
Entry Multiple: 9.5x – 11.5x
Est. MOIC: 2.3x
Risk Factors:
Catalysts:
- Strong commercial payer base protects revenue
Margin Prediction (Trained Ridge Model)
5.9%
R²=0.34 | n=4,907 | Grade B | Actual: 13.1%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-22.4%, 34.2%]. P75 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 2305956.900 | +0.1014 | Higher Revenue/Bed increases predicted margin | |
| Expense/Bed | 2004610.337 | -0.0428 | Higher Expense/Bed decreases predicted margin | |
| Bed Utilization Value | 1809070.571 | +0.0310 | Higher Bed Utilization Value increases predicted m | |
| Occupancy | 0.784 | +0.0147 | Higher Occupancy increases predicted margin | |
| Bed Count | 80.000 | +0.0107 | Higher Bed Count increases predicted margin |
Suburban Community Hospit
Archetype
39.8%
Distress Risk
$3.8M
RCM Opportunity
D
Opportunity Grade
15.1%
Projected Margin
Cluster: Suburban Community Hospital
Percentile within cluster: P52. 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: Elevated
National distress rate: 49.3%
PA distress rate: 48.1%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.785 | -0.241 | ▼ risk |
| Medicaid Day Pct | 0.044 | -0.045 | ▼ risk |
| Revenue Per Bed | 2305956.900 | -0.043 | ▼ risk |
| Net To Gross Ratio | 0.282 | -0.039 | ▼ risk |
| Medicare Day Pct | 0.265 | -0.011 | ▼ risk |
| Beds | 80.000 | -0.009 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $3.8M
Current margin: 13.1%
Projected margin: 15.1%
Grade: D
Comps: 105
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 | 0.282 | 0.376 | 9.5% | $2.0M | 65% | 18mo |
| Payer Mix Optimization | 0.691 | 0.807 | 11.6% | $1.7M | 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. |