ML Analysis — TEXAS NEURO REHAB CENTER
CCN 452038 | 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.
39
/ 100 (D)
Financial Health15/25
RCM Upside7/25
Market Position2/20
Demand Defensibility8/15
Operational Efficiency7/15
Entry Multiple: 6.0x – 8.5x
Est. MOIC: 1.5x
Risk Factors:
- Small facility (<50 beds) — limited scale
Catalysts:
Margin Prediction (Trained Ridge Model)
0.1%
R²=0.34 | n=4,907 | Grade B | Actual: 11.6%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-28.2%, 28.4%]. P62 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Expense/Bed | 722141.106 | +0.1152 | Higher Expense/Bed increases predicted margin | |
| Revenue/Bed | 817231.787 | -0.1064 | Lower Revenue/Bed decreases predicted margin | |
| State Peer Margin | -0.006 | +0.0290 | Higher State Peer Margin increases predicted margi | |
| Occupancy | 0.856 | +0.0188 | Higher Occupancy increases predicted margin | |
| Bed Count | 47.000 | +0.0159 | Higher Bed Count increases predicted margin |
nan%
Distress Risk
$915K
RCM Opportunity
D
Opportunity Grade
14.0%
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 | 0.856 | -0.307 | ▼ risk |
| Medicare Day Pct | 0.263 | -0.011 | ▼ risk |
| Medicaid Day Pct | nan | +nan | ▼ risk |
| Revenue Per Bed | 817231.787 | +0.045 | ▲ risk |
| Net To Gross Ratio | 0.334 | -0.016 | ▼ risk |
| Beds | 47.000 | -0.014 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $915K
Current margin: 11.6%
Projected margin: 14.0%
Grade: D
Comps: 278
Gap analysis vs P75 peers with 60% closure assumption. Confidence-weighted by lever implementation difficulty.
| Lever | Current | Benchmark | Gap | Impact | Confidence | Timeline |
|---|---|---|---|---|---|---|
| Net-to-Gross Ratio Improvement | 0.334 | 0.512 | 17.8% | $801K | 65% | 18mo |
| Payer Mix Optimization | 0.737 | 0.744 | 0.8% | $114K | 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. |