ML Analysis — MUSC HEALTH KERSHAW MEDICAL CENTER
CCN 420048 | 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.
50
/ 100 (C)
Financial Health6/25
RCM Upside19/25
Market Position16/20
Demand Defensibility10/15
Operational Efficiency0/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
Risk Factors:
- Negative operating margin
- Expenses exceed revenue
Catalysts:
- Strong commercial payer base protects revenue
- Limited competition supports pricing power
Margin Prediction (Trained Ridge Model)
-5.5%
R²=0.34 | n=4,907 | Grade B | Actual: -19.3%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-33.8%, 22.8%]. P48 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 858143.727 | -0.1007 | Lower Revenue/Bed decreases predicted margin | |
| Expense/Bed | 1023714.111 | +0.0780 | Higher Expense/Bed increases predicted margin | |
| State Peer Margin | 0.013 | +0.0432 | Higher State Peer Margin increases predicted margi | |
| Reimbursement Quality | 0.111 | +0.0262 | Higher Reimbursement Quality increases predicted m | |
| Net-to-Gross | 0.187 | -0.0203 | Lower Net-to-Gross decreases predicted margin |
Turnaround: 40%Turnaround possible (40%) but uncertain. Margin improvement depends on improving Revenue/Bed.
Under-Performing / Distre
Archetype
51.1%
Distress Risk
$5.9M
RCM Opportunity
C
Opportunity Grade
-12.3%
Projected Margin
Cluster: Under-Performing / Distressed
Percentile within cluster: P2. 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%
SC distress rate: 34.1%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.386 | +0.129 | ▲ risk |
| Net To Gross Ratio | 0.187 | -0.081 | ▼ risk |
| Revenue Per Bed | 858143.727 | +0.043 | ▲ risk |
| Medicaid Day Pct | 0.073 | -0.016 | ▼ risk |
| Beds | 99.000 | -0.007 | ▼ risk |
| Medicare Day Pct | 0.338 | +0.002 | ▲ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $5.9M
Current margin: -19.3%
Projected margin: -12.3%
Grade: C
Comps: 33
Gap analysis vs P75 peers with 60% closure assumption. Confidence-weighted by lever implementation difficulty.
| Lever | Current | Benchmark | Gap | Impact | Confidence | Timeline |
|---|---|---|---|---|---|---|
| Occupancy Improvement | 0.386 | 0.754 | 36.8% | $2.4M | 55% | 24mo |
| Payer Mix Optimization | 0.590 | 0.743 | 15.3% | $2.3M | 50% | 24mo |
| Net-to-Gross Ratio Improvement | 0.187 | 0.308 | 12.0% | $1.2M | 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 | 29.4 | [25.0, 75.0] | P53 | 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. |