ML Analysis — SOUTH TX SPINE & SURGICAL HOSPITAL
CCN 450856 | 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.
43
/ 100 (D)
Financial Health16/25
RCM Upside7/25
Market Position2/20
Demand Defensibility7/15
Operational Efficiency11/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
Risk Factors:
- Small facility (<50 beds) — limited scale
- Low occupancy (<30%) — demand risk
Catalysts:
Margin Prediction (Trained Ridge Model)
-0.9%
R²=0.34 | n=4,907 | Grade B | Actual: 11.4%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-29.2%, 27.4%]. P60 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 2193751.071 | +0.0858 | Higher Revenue/Bed increases predicted margin | |
| Expense/Bed | 1943098.643 | -0.0352 | Higher Expense/Bed decreases predicted margin | |
| State Peer Margin | -0.006 | +0.0290 | Higher State Peer Margin increases predicted margi | |
| Log(Beds) | 3.332 | -0.0242 | Lower Log(Beds) decreases predicted margin | |
| Bed Count | 28.000 | +0.0188 | Higher Bed Count increases predicted margin |
nan%
Distress Risk
$4.1M
RCM Opportunity
C
Opportunity Grade
18.1%
Projected Margin
Distress Analysis
Risk: Unknown
National distress rate: 49.3%
TX distress rate: 42.8%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.294 | +0.214 | ▲ risk |
| Medicare Day Pct | 0.330 | +0.000 | ▲ risk |
| Medicaid Day Pct | nan | +nan | ▼ risk |
| Revenue Per Bed | 2193751.071 | -0.036 | ▼ risk |
| Net To Gross Ratio | 0.311 | -0.026 | ▼ risk |
| Beds | 28.000 | -0.016 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $4.1M
Current margin: 11.4%
Projected margin: 18.1%
Grade: C
Comps: 268
Gap analysis vs P75 peers with 60% closure assumption. Confidence-weighted by lever implementation difficulty.
| Lever | Current | Benchmark | Gap | Impact | Confidence | Timeline |
|---|---|---|---|---|---|---|
| Occupancy Improvement | 0.294 | 0.572 | 27.7% | $1.8M | 55% | 24mo |
| Net-to-Gross Ratio Improvement | 0.311 | 0.514 | 20.3% | $1.5M | 65% | 18mo |
| Payer Mix Optimization | 0.670 | 0.722 | 5.2% | $777K | 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. |