ML Analysis — ST. FRANCIS BARTLETT MED CTR
CCN 440228 | 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 Health11/25
RCM Upside14/25
Market Position9/20
Demand Defensibility11/15
Operational Efficiency1/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
Risk Factors:
Catalysts:
- RCM optimization could add 3-5pp margin
- Strong commercial payer base protects revenue
- Volume growth opportunity from low occupancy
Margin Prediction (Trained Ridge Model)
-3.5%
R²=0.34 | n=4,907 | Grade B | Actual: 1.5%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-31.8%, 24.8%]. P53 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 659359.561 | -0.1284 | Lower Revenue/Bed decreases predicted margin | |
| Expense/Bed | 649223.944 | +0.1242 | Higher Expense/Bed increases predicted margin | |
| Reimbursement Quality | 0.062 | +0.0401 | Higher Reimbursement Quality increases predicted m | |
| Net-to-Gross | 0.098 | -0.0303 | Lower Net-to-Gross decreases predicted margin | |
| State Peer Margin | -0.006 | +0.0291 | Higher State Peer Margin increases predicted margi |
Suburban Community Hospit
Archetype
47.2%
Distress Risk
$6.6M
RCM Opportunity
D
Opportunity Grade
6.6%
Projected Margin
Cluster: Suburban Community Hospital
Percentile within cluster: P20. 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%
TN distress rate: 43.2%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Net To Gross Ratio | 0.098 | -0.121 | ▼ risk |
| Revenue Per Bed | 659359.561 | +0.054 | ▲ risk |
| Medicaid Day Pct | 0.039 | -0.050 | ▼ risk |
| Occupancy Rate | 0.499 | +0.024 | ▲ risk |
| Beds | 196.000 | +0.006 | ▲ risk |
| Medicare Day Pct | 0.327 | +0.000 | ▲ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $6.6M
Current margin: 1.5%
Projected margin: 6.6%
Grade: D
Comps: 35
Gap analysis vs P75 peers with 60% closure assumption. Confidence-weighted by lever implementation difficulty.
| Lever | Current | Benchmark | Gap | Impact | Confidence | Timeline |
|---|---|---|---|---|---|---|
| Net-to-Gross Ratio Improvement | 0.098 | 0.277 | 17.8% | $2.7M | 65% | 18mo |
| Payer Mix Optimization | 0.634 | 0.773 | 13.9% | $2.1M | 50% | 24mo |
| Occupancy Improvement | 0.499 | 0.773 | 27.4% | $1.8M | 55% | 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 | 25.9 | [25.0, 75.0] | P33 | 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. |