ML Analysis — PAM SQUARED AT CORPUS CHRISTI
CCN 452086 | 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.
42
/ 100 (D)
Financial Health16/25
RCM Upside5/25
Market Position6/20
Demand Defensibility8/15
Operational Efficiency7/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
Risk Factors:
- Small facility (<50 beds) — limited scale
Catalysts:
Margin Prediction (Trained Ridge Model)
1.2%
R²=0.34 | n=4,907 | Grade B | Actual: 21.4%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-27.1%, 29.5%]. P65 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Expense/Bed | 487965.390 | +0.1440 | Higher Expense/Bed increases predicted margin | |
| Revenue/Bed | 621072.659 | -0.1338 | Lower Revenue/Bed decreases predicted margin | |
| State Peer Margin | -0.006 | +0.0290 | Higher State Peer Margin increases predicted margi | |
| Occupancy | 0.862 | +0.0192 | Higher Occupancy increases predicted margin | |
| Bed Count | 41.000 | +0.0168 | Higher Bed Count increases predicted margin |
nan%
Distress Risk
$4.5M
RCM Opportunity
A
Opportunity Grade
39.2%
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 | 0.862 | -0.313 | ▼ risk |
| Medicare Day Pct | 0.535 | +0.036 | ▲ risk |
| Medicaid Day Pct | nan | +nan | ▼ risk |
| Revenue Per Bed | 621072.659 | +0.057 | ▲ risk |
| Beds | 41.000 | -0.014 | ▼ risk |
| Net To Gross Ratio | 0.345 | -0.011 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $4.5M
Current margin: 21.4%
Projected margin: 39.2%
Grade: A
Comps: 278
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 | 0.465 | 0.735 | 27.0% | $4.1M | 50% | 24mo |
| Net-to-Gross Ratio Improvement | 0.345 | 0.504 | 15.9% | $473K | 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. |