ML Analysis — ATHENS REGIONAL MEDICAL CENTER
CCN 440068 | 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.
51
/ 100 (C)
Financial Health18/25
RCM Upside7/25
Market Position15/20
Demand Defensibility7/15
Operational Efficiency5/15
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
- Volume growth opportunity from low occupancy
Margin Prediction (Trained Ridge Model)
-8.6%
R²=0.34 | n=4,907 | Grade B | Actual: 10.8%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-36.9%, 19.7%]. P40 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Expense/Bed | 524073.727 | +0.1396 | Higher Expense/Bed increases predicted margin | |
| Revenue/Bed | 587445.151 | -0.1385 | Lower Revenue/Bed decreases predicted margin | |
| Reimbursement Quality | 0.098 | +0.0297 | Higher Reimbursement Quality increases predicted m | |
| State Peer Margin | -0.006 | +0.0291 | Higher State Peer Margin increases predicted margi | |
| Bed Utilization Value | 84757.537 | -0.0262 | Lower Bed Utilization Value decreases predicted ma |
Suburban Community Hospit
Archetype
60.2%
Distress Risk
$8.9M
RCM Opportunity
C
Opportunity Grade
19.6%
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 | 0.144 | +0.354 | ▲ risk |
| Medicaid Day Pct | 0.207 | +0.118 | ▲ risk |
| Net To Gross Ratio | 0.184 | -0.082 | ▼ risk |
| Revenue Per Bed | 587445.151 | +0.059 | ▲ risk |
| Medicare Day Pct | 0.259 | -0.012 | ▼ risk |
| Beds | 172.000 | +0.003 | ▲ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $8.9M
Current margin: 10.8%
Projected margin: 19.6%
Grade: C
Comps: 37
Gap analysis vs P75 peers with 60% closure assumption. Confidence-weighted by lever implementation difficulty.
| Lever | Current | Benchmark | Gap | Impact | Confidence | Timeline |
|---|---|---|---|---|---|---|
| Occupancy Improvement | 0.144 | 0.782 | 63.8% | $4.2M | 55% | 24mo |
| Payer Mix Optimization | 0.534 | 0.767 | 23.2% | $3.5M | 50% | 24mo |
| Net-to-Gross Ratio Improvement | 0.184 | 0.286 | 10.2% | $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 | 27.0 | [25.0, 75.0] | P38 | 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. |