ML Analysis — AHN WEXFORD HOSPITAL
CCN 390334 | 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.
47
/ 100 (C)
Financial Health4/25
RCM Upside18/25
Market Position15/20
Demand Defensibility8/15
Operational Efficiency2/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
Risk Factors:
- Negative operating margin
- Low occupancy (<30%) — demand risk
- Expenses exceed revenue
Catalysts:
- RCM optimization could add 3-5pp margin
- Strong commercial payer base protects revenue
- Limited competition supports pricing power
- Volume growth opportunity from low occupancy
Margin Prediction (Trained Ridge Model)
-10.7%
R²=0.34 | n=4,907 | Grade B | Actual: -8.7%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-39.0%, 17.6%]. P36 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 517955.229 | -0.1482 | Lower Revenue/Bed decreases predicted margin | |
| Expense/Bed | 562984.021 | +0.1348 | Higher Expense/Bed increases predicted margin | |
| Bed Utilization Value | 111327.063 | -0.0253 | Lower Bed Utilization Value decreases predicted ma | |
| Occupancy | 0.215 | -0.0176 | Lower Occupancy decreases predicted margin | |
| Log(Beds) | 4.970 | +0.0138 | Higher Log(Beds) increases predicted margin |
Turnaround: 32%Turnaround possible (32%) but uncertain. Margin improvement depends on improving Revenue/Bed.
Under-Performing / Distre
Archetype
54.6%
Distress Risk
$5.5M
RCM Opportunity
C
Opportunity Grade
-1.4%
Projected Margin
Cluster: Under-Performing / Distressed
Percentile within cluster: P54. Deeply negative margins signal severe distress. Evaluate asset-level acquisition at 4-6x normalized EBITDA.
Nearest Peers
| Hospital | State | Beds |
|---|---|---|
| HOLY FAMILY MEMORIAL INC | WI | 58 |
| MIDDLESBORO ARH | KY | 46 |
| ATRIUM HEALTH NAVICENT BALDWIN | GA | 86 |
| BON SECOURS COMMUNITY HOSPITAL | NY | 98 |
| ADVANCED SPECIALTY HOSP. OF TOLEDO | OH | 40 |
| COMMUNITY HEALTH CENTER BRANCH | MI | 75 |
Distress Analysis
Risk: High
National distress rate: 49.3%
PA distress rate: 48.1%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.215 | +0.288 | ▲ risk |
| Medicaid Day Pct | 0.011 | -0.077 | ▼ risk |
| Revenue Per Bed | 517955.229 | +0.063 | ▲ risk |
| Net To Gross Ratio | 0.263 | -0.047 | ▼ risk |
| Medicare Day Pct | 0.235 | -0.016 | ▼ risk |
| Beds | 144.000 | -0.001 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $5.5M
Current margin: -8.7%
Projected margin: -1.4%
Grade: C
Comps: 102
Gap analysis vs P75 peers with 60% closure assumption. Confidence-weighted by lever implementation difficulty.
| Lever | Current | Benchmark | Gap | Impact | Confidence | Timeline |
|---|---|---|---|---|---|---|
| Occupancy Improvement | 0.215 | 0.752 | 53.7% | $3.5M | 55% | 24mo |
| Payer Mix Optimization | 0.754 | 0.839 | 8.5% | $1.3M | 50% | 24mo |
| Net-to-Gross Ratio Improvement | 0.263 | 0.337 | 7.4% | $646K | 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 | 27.1 | [25.0, 75.0] | P39 | 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. |