ML Analysis — HIMA SAN PABLO CUPEY
CCN 400133 | Clustering + Distress + RCM Opportunity
🛡️ Public data only — no PHI permitted on this instance.
Investability Score
Speculative — only pursue if turnaround thesis is strong and entry multiple reflects risk.
40
/ 100 (D)
Financial Health3/25
RCM Upside18/25
Market Position15/20
Demand Defensibility4/15
Operational Efficiency0/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
Risk Factors:
- Negative operating margin
- Low occupancy (<30%) — demand risk
- Expenses exceed revenue
Catalysts:
- Strong commercial payer base protects revenue
- Limited competition supports pricing power
Margin Prediction (Trained Ridge Model)
-19.8%
R²=0.34 | n=4,907 | Grade B | Actual: -50.0%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-48.1%, 8.5%]. P21 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 28113.052 | -0.2165 | Lower Revenue/Bed decreases predicted margin | |
| Expense/Bed | 142754.379 | +0.1866 | Higher Expense/Bed increases predicted margin | |
| State Peer Margin | -0.088 | -0.0313 | Lower State Peer Margin decreases predicted margin | |
| Bed Utilization Value | 4627.248 | -0.0288 | Lower Bed Utilization Value decreases predicted ma | |
| Occupancy | 0.165 | -0.0205 | Lower Occupancy decreases predicted margin |
Turnaround: 20%Low turnaround probability (20%). Structural disadvantages in Revenue/Bed and Expense/Bed.
Under-Performing / Distre
Archetype
60.9%
Distress Risk
$6.4M
RCM Opportunity
A
Opportunity Grade
345.0%
Projected Margin
Cluster: Under-Performing / Distressed
Percentile within cluster: P95. 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%
PR distress rate: 55.2%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.165 | +0.335 | ▲ risk |
| Medicaid Day Pct | 0.246 | +0.157 | ▲ risk |
| Revenue Per Bed | 28113.052 | +0.092 | ▲ risk |
| Net To Gross Ratio | 0.249 | -0.053 | ▼ risk |
| Medicare Day Pct | 0.056 | -0.047 | ▼ risk |
| Beds | 58.000 | -0.012 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $6.4M
Current margin: -50.0%
Projected margin: 345.0%
Grade: A
Comps: 19
Gap analysis vs P75 peers with 60% closure assumption. Confidence-weighted by lever implementation difficulty.
| Lever | Current | Benchmark | Gap | Impact | Confidence | Timeline |
|---|---|---|---|---|---|---|
| Occupancy Improvement | 0.165 | 0.831 | 66.6% | $4.4M | 55% | 24mo |
| Payer Mix Optimization | 0.699 | 0.829 | 13.1% | $2.0M | 50% | 24mo |
| Net-to-Gross Ratio Improvement | 0.249 | 0.682 | 43.3% | $83K | 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 | 38.0 | [25.0, 75.0] | P81 | Average — predicted days in ar is near the median. |
| Clean Claim Rate | 98.0% | [80.0%, 98.0%] | P0 | Strong — predicted clean claim rate is in the top third. |
| Net Collection Rate | 98.2% | [90.0%, 99.5%] | P1 | Strong — predicted net collection rate is in the top third. |