ML Analysis — BEHAVIORAL HEALTH CENTERS
CCN 444024 | 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.
38
/ 100 (D)
Financial Health12/25
RCM Upside10/25
Market Position2/20
Demand Defensibility6/15
Operational Efficiency7/15
Entry Multiple: 6.0x – 8.5x
Est. MOIC: 1.5x
Risk Factors:
- Heavy Medicare dependence (>55%)
- Small facility (<50 beds) — limited scale
Catalysts:
Margin Prediction (Trained Ridge Model)
0.0%
R²=0.34 | n=4,907 | Grade B | Actual: 8.2%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-28.3%, 28.3%]. P62 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 274836.312 | -0.1821 | Lower Revenue/Bed decreases predicted margin | |
| Expense/Bed | 252181.875 | +0.1731 | Higher Expense/Bed increases predicted margin | |
| Net-to-Gross | 0.755 | +0.0433 | Higher Net-to-Gross increases predicted margin | |
| Log(Beds) | 2.773 | -0.0372 | Lower Log(Beds) decreases predicted margin | |
| Occupancy × Net-to-Gross | 0.649 | +0.0345 | Higher Occupancy × Net-to-Gross increases predicte |
nan%
Distress Risk
$5.5M
RCM Opportunity
A
Opportunity Grade
133.0%
Projected Margin
Distress Analysis
Risk: Unknown
National distress rate: 49.3%
TN distress rate: 43.2%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.860 | -0.311 | ▼ risk |
| Medicare Day Pct | 0.631 | +0.052 | ▲ risk |
| Medicaid Day Pct | nan | +nan | ▼ risk |
| Net To Gross Ratio | 0.755 | +0.172 | ▲ risk |
| Revenue Per Bed | 274836.312 | +0.077 | ▲ risk |
| Beds | 16.000 | -0.018 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $5.5M
Current margin: 8.2%
Projected margin: 133.0%
Grade: A
Comps: 35
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 | 0.369 | 0.735 | 36.6% | $5.5M | 50% | 24mo |
Predicted RCM Performance (Public Data Only)
B
RCM Grade
Average RCM profile — some improvement opportunities. Standard diligence scope recommended.
| Metric | Predicted | 90% CI | Percentile | Assessment |
|---|---|---|---|---|
| Denial Rate | 25.0% | [2.0%, 25.0%] | P83 | Below average — denial rate suggests RCM improvement opportu |
| Days in AR | 75.0 | [25.0, 75.0] | P83 | Below average — days in ar suggests RCM improvement opportun |
| 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. |