ML Analysis — ENCOMPASS HEALTH REHABILITATION HOSP
CCN 453057 | 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.
47
/ 100 (C)
Financial Health15/25
RCM Upside7/25
Market Position8/20
Demand Defensibility8/15
Operational Efficiency9/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
Risk Factors:
- Heavy Medicare dependence (>55%)
Catalysts:
- Limited competition supports pricing power
Margin Prediction (Trained Ridge Model)
3.3%
R²=0.34 | n=4,907 | Grade B | Actual: 11.7%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-25.0%, 31.6%]. P70 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 326900.438 | -0.1748 | Lower Revenue/Bed decreases predicted margin | |
| Expense/Bed | 288540.013 | +0.1686 | Higher Expense/Bed increases predicted margin | |
| Net-to-Gross | 0.682 | +0.0351 | Higher Net-to-Gross increases predicted margin | |
| Occupancy × Net-to-Gross | 0.604 | +0.0311 | Higher Occupancy × Net-to-Gross increases predicte | |
| State Peer Margin | -0.006 | +0.0290 | Higher State Peer Margin increases predicted margi |
nan%
Distress Risk
$6.9M
RCM Opportunity
A
Opportunity Grade
38.0%
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 | 0.885 | -0.334 | ▼ risk |
| Medicare Day Pct | 0.649 | +0.055 | ▲ risk |
| Medicaid Day Pct | nan | +nan | ▼ risk |
| Net To Gross Ratio | 0.682 | +0.139 | ▲ risk |
| Revenue Per Bed | 326900.438 | +0.074 | ▲ risk |
| Beds | 80.000 | -0.009 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $6.9M
Current margin: 11.7%
Projected margin: 38.0%
Grade: A
Comps: 223
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 | 0.351 | 0.808 | 45.7% | $6.9M | 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. |