ML Analysis — SO TENN REG MED CTR OF PULASKI
CCN 440020 | 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 Health12/25
RCM Upside10/25
Market Position15/20
Demand Defensibility7/15
Operational Efficiency3/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
Risk Factors:
- Low occupancy (<30%) — demand risk
Catalysts:
- Strong commercial payer base protects revenue
- Limited competition supports pricing power
Margin Prediction (Trained Ridge Model)
-9.0%
R²=0.34 | n=4,907 | Grade B | Actual: 6.5%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-37.3%, 19.3%]. P39 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 550007.568 | -0.1437 | Lower Revenue/Bed decreases predicted margin | |
| Expense/Bed | 514153.074 | +0.1408 | Higher Expense/Bed increases predicted margin | |
| State Peer Margin | -0.006 | +0.0291 | Higher State Peer Margin increases predicted margi | |
| Reimbursement Quality | 0.114 | +0.0252 | Higher Reimbursement Quality increases predicted m | |
| Bed Utilization Value | 132846.408 | -0.0246 | Lower Bed Utilization Value decreases predicted ma |
Suburban Community Hospit
Archetype
58.7%
Distress Risk
$7.7M
RCM Opportunity
A
Opportunity Grade
23.7%
Projected Margin
Cluster: Suburban Community Hospital
Percentile within cluster: P91. 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: High
National distress rate: 49.3%
TN distress rate: 43.2%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.242 | +0.263 | ▲ risk |
| Medicaid Day Pct | 0.244 | +0.155 | ▲ risk |
| Net To Gross Ratio | 0.209 | -0.071 | ▼ risk |
| Revenue Per Bed | 550007.568 | +0.061 | ▲ risk |
| Medicare Day Pct | 0.210 | -0.020 | ▼ risk |
| Beds | 81.000 | -0.009 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $7.7M
Current margin: 6.5%
Projected margin: 23.7%
Grade: A
Comps: 57
Gap analysis vs P75 peers with 60% closure assumption. Confidence-weighted by lever implementation difficulty.
| Lever | Current | Benchmark | Gap | Impact | Confidence | Timeline |
|---|---|---|---|---|---|---|
| Occupancy Improvement | 0.242 | 0.782 | 54.1% | $3.6M | 55% | 24mo |
| Payer Mix Optimization | 0.545 | 0.751 | 20.6% | $3.1M | 50% | 24mo |
| Net-to-Gross Ratio Improvement | 0.209 | 0.400 | 19.1% | $998K | 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 | 28.9 | [25.0, 75.0] | P50 | 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. |