ML Analysis — EINSTEIN MEDICAL CENTER MONTGOMERY
CCN 390329 | 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.
51
/ 100 (C)
Financial Health15/25
RCM Upside11/25
Market Position9/20
Demand Defensibility11/15
Operational Efficiency5/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
Risk Factors:
Catalysts:
- Strong commercial payer base protects revenue
Margin Prediction (Trained Ridge Model)
1.6%
R²=0.34 | n=4,907 | Grade B | Actual: 6.9%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-26.7%, 29.9%]. P66 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Expense/Bed | 1470270.297 | +0.0230 | Higher Expense/Bed increases predicted margin | |
| Log(Beds) | 5.165 | +0.0184 | Higher Log(Beds) increases predicted margin | |
| Occupancy | 0.840 | +0.0179 | Higher Occupancy increases predicted margin | |
| Net-to-Gross | 0.232 | -0.0154 | Lower Net-to-Gross decreases predicted margin | |
| Bed Utilization Value | 1325736.075 | +0.0150 | Higher Bed Utilization Value increases predicted m |
Suburban Community Hospit
Archetype
39.7%
Distress Risk
$5.4M
RCM Opportunity
D
Opportunity Grade
8.8%
Projected Margin
Cluster: Suburban Community Hospital
Percentile within cluster: P13. 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%
PA distress rate: 48.1%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.840 | -0.292 | ▼ risk |
| Net To Gross Ratio | 0.232 | -0.061 | ▼ risk |
| Medicaid Day Pct | 0.053 | -0.036 | ▼ risk |
| Medicare Day Pct | 0.291 | -0.006 | ▼ risk |
| Beds | 175.000 | +0.004 | ▲ risk |
| Revenue Per Bed | 1578728.011 | +0.000 | ▲ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $5.4M
Current margin: 6.9%
Projected margin: 8.8%
Grade: D
Comps: 100
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 | 0.656 | 0.842 | 18.6% | $2.8M | 50% | 24mo |
| Net-to-Gross Ratio Improvement | 0.232 | 0.313 | 8.2% | $2.6M | 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 | 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. |