ML Analysis — ST. LUKES HOSPITAL - MONROE CAMPUS
CCN 390330 | 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.
62
/ 100 (B)
Financial Health17/25
RCM Upside11/25
Market Position15/20
Demand Defensibility12/15
Operational Efficiency7/15
Entry Multiple: 9.5x – 11.5x
Est. MOIC: 2.3x
Risk Factors:
Catalysts:
- Strong commercial payer base protects revenue
- Limited competition supports pricing power
Margin Prediction (Trained Ridge Model)
5.6%
R²=0.34 | n=4,907 | Grade B | Actual: 7.8%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-22.7%, 33.9%]. P75 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 2263625.816 | +0.0955 | Higher Revenue/Bed increases predicted margin | |
| Expense/Bed | 2087109.643 | -0.0530 | Higher Expense/Bed decreases predicted margin | |
| Reimbursement Quality | 0.074 | +0.0366 | Higher Reimbursement Quality increases predicted m | |
| Bed Utilization Value | 1891206.528 | +0.0338 | Higher Bed Utilization Value increases predicted m | |
| Net-to-Gross | 0.124 | -0.0274 | Lower Net-to-Gross decreases predicted margin |
Suburban Community Hospit
Archetype
37.4%
Distress Risk
$9.4M
RCM Opportunity
D
Opportunity Grade
12.0%
Projected Margin
Cluster: Suburban Community Hospital
Percentile within cluster: P51. 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 | 0.835 | -0.288 | ▼ risk |
| Net To Gross Ratio | 0.125 | -0.109 | ▼ risk |
| Medicaid Day Pct | 0.039 | -0.050 | ▼ risk |
| Revenue Per Bed | 2263625.816 | -0.040 | ▼ risk |
| Beds | 98.000 | -0.007 | ▼ risk |
| Medicare Day Pct | 0.365 | +0.006 | ▲ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $9.4M
Current margin: 7.8%
Projected margin: 12.0%
Grade: D
Comps: 107
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 | 0.125 | 0.359 | 23.5% | $6.1M | 65% | 18mo |
| Payer Mix Optimization | 0.596 | 0.816 | 22.0% | $3.3M | 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 | 25.6 | [25.0, 75.0] | P31 | 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. |