ML Analysis — EAST COOPER REGIONAL MEDICAL CENTER
CCN 420089 | 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.
49
/ 100 (C)
Financial Health19/25
RCM Upside5/25
Market Position12/20
Demand Defensibility7/15
Operational Efficiency7/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
Risk Factors:
Catalysts:
- Strong commercial payer base protects revenue
- Volume growth opportunity from low occupancy
Margin Prediction (Trained Ridge Model)
5.2%
R²=0.34 | n=4,907 | Grade B | Actual: 28.3%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-23.1%, 33.6%]. P74 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Expense/Bed | 1231297.850 | +0.0525 | Higher Expense/Bed increases predicted margin | |
| State Peer Margin | 0.013 | +0.0432 | Higher State Peer Margin increases predicted margi | |
| Revenue/Bed | 1717726.708 | +0.0193 | Higher Revenue/Bed increases predicted margin | |
| Net-to-Gross | 0.209 | -0.0179 | Lower Net-to-Gross decreases predicted margin | |
| Reimbursement Quality | 0.155 | +0.0132 | Higher Reimbursement Quality increases predicted m |
Suburban Community Hospit
Archetype
48.7%
Distress Risk
$4.6M
RCM Opportunity
D
Opportunity Grade
30.6%
Projected Margin
Cluster: Suburban Community Hospital
Percentile within cluster: P64. Community hospitals — the largest PE deal category. Focus on RCM improvement and cost optimization at 9-11x.
Nearest Peers
| Hospital | State | Beds |
|---|---|---|
| PROMEDICA HICKMAN HOSPITAL | MI | 58 |
| WATAUGA MEDICAL CENTER | NC | 95 |
| ST LUKES HOSPITAL - EASTON CAMPUS | PA | 29 |
| CULPEPER MEMORIAL HOSPITAL | VA | 70 |
| SOUTHSIDE COMMUNITY HOSPITAL | VA | 80 |
| SPECTRUM HEALTH LUDINGTON | MI | 45 |
Distress Analysis
Risk: Elevated
National distress rate: 49.3%
SC distress rate: 34.1%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.406 | +0.111 | ▲ risk |
| Net To Gross Ratio | 0.209 | -0.071 | ▼ risk |
| Medicaid Day Pct | 0.058 | -0.031 | ▼ risk |
| Medicare Day Pct | 0.199 | -0.022 | ▼ risk |
| Revenue Per Bed | 1717726.708 | -0.008 | ▼ risk |
| Beds | 120.000 | -0.004 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $4.6M
Current margin: 28.3%
Projected margin: 30.6%
Grade: D
Comps: 32
Gap analysis vs P75 peers with 60% closure assumption. Confidence-weighted by lever implementation difficulty.
| Lever | Current | Benchmark | Gap | Impact | Confidence | Timeline |
|---|---|---|---|---|---|---|
| Occupancy Improvement | 0.406 | 0.748 | 34.2% | $2.3M | 55% | 24mo |
| Net-to-Gross Ratio Improvement | 0.209 | 0.293 | 8.4% | $2.0M | 65% | 18mo |
| Payer Mix Optimization | 0.743 | 0.765 | 2.2% | $329K | 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 | 25.0 | [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. |