ML Analysis — PINEWOOD SPRINGS
CCN 444029 | 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 Health3/25
RCM Upside20/25
Market Position8/20
Demand Defensibility7/15
Operational Efficiency0/15
Entry Multiple: 6.0x – 8.5x
Est. MOIC: 1.5x
Risk Factors:
- Negative operating margin
- Expenses exceed revenue
Catalysts:
- Limited competition supports pricing power
Margin Prediction (Trained Ridge Model)
-5.6%
R²=0.34 | n=4,907 | Grade B | Actual: -50.0%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-33.9%, 22.7%]. P48 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 210994.000 | -0.1910 | Lower Revenue/Bed decreases predicted margin | |
| Expense/Bed | 317143.900 | +0.1651 | Higher Expense/Bed increases predicted margin | |
| State Peer Margin | -0.006 | +0.0291 | Higher State Peer Margin increases predicted margi | |
| Net-to-Gross | 0.131 | -0.0266 | Lower Net-to-Gross decreases predicted margin | |
| Bed Utilization Value | 131644.841 | -0.0246 | Lower Bed Utilization Value decreases predicted ma |
Turnaround: 40%Turnaround possible (40%) but uncertain. Margin improvement depends on improving Revenue/Bed.
nan%
Distress Risk
$1.7M
RCM Opportunity
B
Opportunity Grade
-36.9%
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 | 0.624 | -0.092 | ▼ risk |
| Medicare Day Pct | 0.071 | -0.044 | ▼ risk |
| Medicaid Day Pct | nan | +nan | ▼ risk |
| Net To Gross Ratio | 0.131 | -0.106 | ▼ risk |
| Revenue Per Bed | 210994.000 | +0.081 | ▲ risk |
| Beds | 60.000 | -0.012 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $1.7M
Current margin: -50.0%
Projected margin: -36.9%
Grade: B
Comps: 64
Gap analysis vs P75 peers with 60% closure assumption. Confidence-weighted by lever implementation difficulty.
| Lever | Current | Benchmark | Gap | Impact | Confidence | Timeline |
|---|---|---|---|---|---|---|
| Occupancy Improvement | 0.624 | 0.810 | 18.6% | $1.2M | 55% | 24mo |
| Net-to-Gross Ratio Improvement | 0.131 | 0.422 | 29.0% | $430K | 65% | 18mo |
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. |