ML Analysis — EL PASO CHILDRENS HOSPITAL
CCN 453313 | 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.
49
/ 100 (C)
Financial Health11/25
RCM Upside14/25
Market Position9/20
Demand Defensibility8/15
Operational Efficiency7/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
Risk Factors:
Catalysts:
- RCM optimization could add 3-5pp margin
- Strong commercial payer base protects revenue
Margin Prediction (Trained Ridge Model)
-4.0%
R²=0.34 | n=4,907 | Grade B | Actual: 2.2%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-32.3%, 24.3%]. P52 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Expense/Bed | 1254407.771 | +0.0496 | Higher Expense/Bed increases predicted margin | |
| Revenue/Bed | 1282879.008 | -0.0414 | Lower Revenue/Bed decreases predicted margin | |
| Reimbursement Quality | 0.318 | -0.0334 | Higher Reimbursement Quality decreases predicted m | |
| State Peer Margin | -0.006 | +0.0290 | Higher State Peer Margin increases predicted margi | |
| Commercial % | 0.880 | +0.0121 | Higher Commercial % increases predicted margin |
Suburban Community Hospit
Archetype
48.5%
Distress Risk
$1.4M
RCM Opportunity
D
Opportunity Grade
3.1%
Projected Margin
Cluster: Suburban Community Hospital
Percentile within cluster: P72. Community hospitals — the largest PE deal category. Focus on RCM improvement and cost optimization at 9-11x.
Nearest Peers
| Hospital | State | Beds |
|---|---|---|
| CLARA MAASS MEDICAL CENTER | NJ | 259 |
| PRESENCE SAINTS MARY & ELIZABETH MED | IL | 266 |
| ADVENTIST HEALTH BAKERSFIELD | CA | 254 |
| BRISTOL REGIONAL MEDICAL CENTER | TN | 244 |
| HOLSTON VALLEY HOSP & MED CTR | TN | 286 |
| SPRINGFIELD REGIONAL MEDICAL CENTER | OH | 230 |
Distress Analysis
Risk: Elevated
National distress rate: 49.3%
TX distress rate: 42.8%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Medicare Day Pct | 0.000 | -0.056 | ▼ risk |
| Medicaid Day Pct | 0.120 | +0.031 | ▲ risk |
| Occupancy Rate | 0.546 | -0.019 | ▼ risk |
| Revenue Per Bed | 1282879.008 | +0.017 | ▲ risk |
| Beds | 122.000 | -0.004 | ▼ risk |
| Net To Gross Ratio | 0.361 | -0.004 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $1.4M
Current margin: 2.2%
Projected margin: 3.1%
Grade: D
Comps: 173
Gap analysis vs P75 peers with 60% closure assumption. Confidence-weighted by lever implementation difficulty.
| Lever | Current | Benchmark | Gap | Impact | Confidence | Timeline |
|---|---|---|---|---|---|---|
| Occupancy Improvement | 0.546 | 0.753 | 20.8% | $1.4M | 55% | 24mo |
Predicted RCM Performance (Public Data Only)
A
RCM Grade
Strong RCM profile — likely low-risk from an operations perspective. Focus diligence on growth thesis.
| Metric | Predicted | 90% CI | Percentile | Assessment |
|---|---|---|---|---|
| Denial Rate | 2.0% | [2.0%, 25.0%] | P0 | Strong — predicted denial rate is in the top third nationall |
| Days in AR | 25.0 | [25.0, 75.0] | P0 | Strong — predicted days in ar is in the top third nationally |
| 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. |