ML Analysis — UT HEALTH CENTER AT TYLER
CCN 450690 | 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.
45
/ 100 (C)
Financial Health6/25
RCM Upside19/25
Market Position11/20
Demand Defensibility6/15
Operational Efficiency4/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
Risk Factors:
- Negative operating margin
- Low occupancy (<30%) — demand risk
- 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)
-29.8%
R²=0.34 | n=4,907 | Grade B | Actual: -50.0%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-58.1%, -1.5%]. P13 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Expense/Bed | 3283760.285 | -0.2004 | Higher Expense/Bed decreases predicted margin | |
| Revenue/Bed | 1312037.405 | -0.0373 | Lower Revenue/Bed decreases predicted margin | |
| State Peer Margin | -0.006 | +0.0290 | Higher State Peer Margin increases predicted margi | |
| Bed Utilization Value | 296649.364 | -0.0191 | Lower Bed Utilization Value decreases predicted ma | |
| Occupancy | 0.226 | -0.0170 | Lower Occupancy decreases predicted margin |
Turnaround: 11%Low turnaround probability (11%). Structural disadvantages in Expense/Bed and Revenue/Bed.
Under-Performing / Distre
Archetype
52.3%
Distress Risk
$5.5M
RCM Opportunity
D
Opportunity Grade
-46.4%
Projected Margin
Cluster: Under-Performing / Distressed
Percentile within cluster: P67. 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 | 0.226 | +0.278 | ▲ risk |
| Medicaid Day Pct | 0.003 | -0.086 | ▼ risk |
| Net To Gross Ratio | 0.252 | -0.052 | ▼ risk |
| Medicare Day Pct | 0.132 | -0.034 | ▼ risk |
| Revenue Per Bed | 1312037.405 | +0.016 | ▲ risk |
| Beds | 116.000 | -0.004 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $5.5M
Current margin: -50.0%
Projected margin: -46.4%
Grade: D
Comps: 187
Gap analysis vs P75 peers with 60% closure assumption. Confidence-weighted by lever implementation difficulty.
| Lever | Current | Benchmark | Gap | Impact | Confidence | Timeline |
|---|---|---|---|---|---|---|
| Occupancy Improvement | 0.226 | 0.755 | 52.9% | $3.5M | 55% | 24mo |
| Net-to-Gross Ratio Improvement | 0.252 | 0.367 | 11.5% | $2.0M | 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 | 35.1 | [25.0, 75.0] | P79 | 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 | 98.9% | [90.0%, 99.5%] | P3 | Strong — predicted net collection rate is in the top third. |