ML Analysis — WADLEY REGIONAL MEDICAL CENTER
CCN 450200 | 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.
46
/ 100 (C)
Financial Health6/25
RCM Upside19/25
Market Position13/20
Demand Defensibility8/15
Operational Efficiency0/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
Risk Factors:
- Negative operating margin
- Expenses exceed revenue
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)
-7.2%
R²=0.34 | n=4,907 | Grade B | Actual: -15.3%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-35.5%, 21.1%]. P44 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 495331.081 | -0.1513 | Lower Revenue/Bed decreases predicted margin | |
| Expense/Bed | 571250.362 | +0.1338 | Higher Expense/Bed increases predicted margin | |
| State Peer Margin | -0.006 | +0.0290 | Higher State Peer Margin increases predicted margi | |
| Reimbursement Quality | 0.102 | +0.0287 | Higher Reimbursement Quality increases predicted m | |
| Bed Utilization Value | 171614.523 | -0.0233 | Lower Bed Utilization Value decreases predicted ma |
Turnaround: 38%Turnaround possible (38%) but uncertain. Margin improvement depends on improving Revenue/Bed.
Under-Performing / Distre
Archetype
52.7%
Distress Risk
$6.9M
RCM Opportunity
C
Opportunity Grade
-7.8%
Projected Margin
Cluster: Under-Performing / Distressed
Percentile within cluster: P11. Deeply negative margins signal severe distress. Evaluate asset-level acquisition at 4-6x normalized EBITDA.
Nearest Peers
| Hospital | State | Beds |
|---|---|---|
| HOLY FAMILY MEMORIAL INC | WI | 58 |
| MIDDLESBORO ARH | KY | 46 |
| ATRIUM HEALTH NAVICENT BALDWIN | GA | 86 |
| BON SECOURS COMMUNITY HOSPITAL | NY | 98 |
| ADVANCED SPECIALTY HOSP. OF TOLEDO | OH | 40 |
| COMMUNITY HEALTH CENTER BRANCH | MI | 75 |
Distress Analysis
Risk: High
National distress rate: 49.3%
TX distress rate: 42.8%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.346 | +0.166 | ▲ risk |
| Net To Gross Ratio | 0.164 | -0.091 | ▼ risk |
| Revenue Per Bed | 495331.081 | +0.064 | ▲ risk |
| Medicare Day Pct | 0.292 | -0.006 | ▼ risk |
| Beds | 185.000 | +0.005 | ▲ risk |
| Medicaid Day Pct | 0.086 | -0.003 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $6.9M
Current margin: -15.3%
Projected margin: -7.8%
Grade: C
Comps: 152
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 | 0.622 | 0.822 | 20.0% | $3.0M | 50% | 24mo |
| Occupancy Improvement | 0.346 | 0.738 | 39.1% | $2.6M | 55% | 24mo |
| Net-to-Gross Ratio Improvement | 0.164 | 0.286 | 12.2% | $1.3M | 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 | 27.6 | [25.0, 75.0] | P41 | 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. |