ML Analysis — SOLARA SPECIALTY MCALLEN
CCN 452095 | 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.
40
/ 100 (D)
Financial Health15/25
RCM Upside5/25
Market Position4/20
Demand Defensibility10/15
Operational Efficiency5/15
Entry Multiple: 6.0x – 8.5x
Est. MOIC: 1.5x
Risk Factors:
Catalysts:
Margin Prediction (Trained Ridge Model)
0.8%
R²=0.34 | n=4,907 | Grade B | Actual: 20.7%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-27.5%, 29.1%]. P64 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Expense/Bed | 470613.925 | +0.1462 | Higher Expense/Bed increases predicted margin | |
| Revenue/Bed | 593562.849 | -0.1376 | Lower Revenue/Bed decreases predicted margin | |
| Reimbursement Quality | 0.090 | +0.0322 | Higher Reimbursement Quality increases predicted m | |
| State Peer Margin | -0.006 | +0.0290 | Higher State Peer Margin increases predicted margi | |
| Net-to-Gross | 0.118 | -0.0281 | Lower Net-to-Gross decreases predicted margin |
nan%
Distress Risk
$1.6M
RCM Opportunity
D
Opportunity Grade
25.8%
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 | 0.903 | -0.351 | ▼ risk |
| Medicare Day Pct | 0.240 | -0.015 | ▼ risk |
| Medicaid Day Pct | nan | +nan | ▼ risk |
| Net To Gross Ratio | 0.118 | -0.112 | ▼ risk |
| Revenue Per Bed | 593562.849 | +0.058 | ▲ risk |
| Beds | 53.000 | -0.013 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $1.6M
Current margin: 20.7%
Projected margin: 25.8%
Grade: D
Comps: 226
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 | 0.118 | 0.510 | 39.2% | $1.4M | 65% | 18mo |
| Payer Mix Optimization | 0.760 | 0.771 | 1.1% | $161K | 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. |