ML Analysis — ERLANGER BLEDSOE HOSPITAL
CCN 441306 | Clustering + Distress + RCM Opportunity
🛡️ Public data only — no PHI permitted on this instance.
Investability Score
Speculative — only pursue if turnaround thesis is strong and entry multiple reflects risk.
39
/ 100 (D)
Financial Health5/25
RCM Upside16/25
Market Position14/20
Demand Defensibility4/15
Operational Efficiency0/15
Entry Multiple: 6.0x – 8.5x
Est. MOIC: 1.5x
Risk Factors:
- Negative operating margin
- Heavy Medicare dependence (>55%)
- Small facility (<50 beds) — limited scale
- Low occupancy (<30%) — demand risk
Catalysts:
- Strong commercial payer base protects revenue
- Limited competition supports pricing power
Margin Prediction (Trained Ridge Model)
-8.2%
R²=0.34 | n=4,907 | Grade B | Actual: -0.9%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-36.4%, 20.2%]. P42 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 676015.040 | -0.1261 | Lower Revenue/Bed decreases predicted margin | |
| Expense/Bed | 681794.960 | +0.1202 | Higher Expense/Bed increases predicted margin | |
| Reimbursement Quality | 0.072 | +0.0373 | Higher Reimbursement Quality increases predicted m | |
| State Peer Margin | -0.006 | +0.0291 | Higher State Peer Margin increases predicted margi | |
| Log(Beds) | 3.219 | -0.0268 | Lower Log(Beds) decreases predicted margin |
Turnaround: 36%Turnaround possible (36%) but uncertain. Margin improvement depends on improving Revenue/Bed.
Rural/Critical Access
Archetype
55.2%
Distress Risk
$8.5M
RCM Opportunity
A
Opportunity Grade
49.3%
Projected Margin
Cluster: Rural/Critical Access
Percentile within cluster: P17. Rural/small hospitals face structural headwinds. Evaluate CAH conversion, telehealth, and rural health funding.
Nearest Peers
| Hospital | State | Beds |
|---|---|---|
| BRECKINRIDGE HEALTH INC | KY | 25 |
| SHERIDAN MEMORIAL HOSPITAL | MT | 19 |
| DAYTON GENERAL HOSPITAL | WA | 25 |
| BLUE MOUNTAIN HOSPITAL DISTRICT | OR | 16 |
| COMMUNITY HOSPITAL | WY | 25 |
| CARLE EUREKA HOSPITAL | IL | 25 |
Distress Analysis
Risk: High
National distress rate: 49.3%
TN distress rate: 43.2%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.172 | +0.327 | ▲ risk |
| Medicaid Day Pct | 0.001 | -0.088 | ▼ risk |
| Net To Gross Ratio | 0.174 | -0.087 | ▼ risk |
| Revenue Per Bed | 676015.040 | +0.053 | ▲ risk |
| Medicare Day Pct | 0.588 | +0.045 | ▲ risk |
| Beds | 25.000 | -0.017 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $8.5M
Current margin: -0.9%
Projected margin: 49.3%
Grade: A
Comps: 55
Gap analysis vs P75 peers with 60% closure assumption. Confidence-weighted by lever implementation difficulty.
| Lever | Current | Benchmark | Gap | Impact | Confidence | Timeline |
|---|---|---|---|---|---|---|
| Payer Mix Optimization | 0.411 | 0.704 | 29.2% | $4.4M | 50% | 24mo |
| Occupancy Improvement | 0.172 | 0.703 | 53.1% | $3.5M | 55% | 24mo |
| Net-to-Gross Ratio Improvement | 0.174 | 0.469 | 29.5% | $583K | 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 | 34.1 | [25.0, 75.0] | P78 | Average — predicted days in ar is near the median. |
| Clean Claim Rate | 98.0% | [80.0%, 98.0%] | P0 | Strong — predicted clean claim rate is in the top third. |
| Net Collection Rate | 99.4% | [90.0%, 99.5%] | P6 | Strong — predicted net collection rate is in the top third. |