ML Analysis — PERIMETER BEHAVIORAL HOSPITAL OF DAL
CCN 454149 | 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.
50
/ 100 (C)
Financial Health6/25
RCM Upside19/25
Market Position15/20
Demand Defensibility7/15
Operational Efficiency2/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
Risk Factors:
- Negative operating margin
- Expenses exceed revenue
Catalysts:
- Strong commercial payer base protects revenue
- Limited competition supports pricing power
Margin Prediction (Trained Ridge Model)
-6.8%
R²=0.34 | n=4,907 | Grade B | Actual: -10.8%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-35.1%, 21.5%]. P45 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 150741.390 | -0.1994 | Lower Revenue/Bed decreases predicted margin | |
| Expense/Bed | 167083.010 | +0.1836 | Higher Expense/Bed increases predicted margin | |
| Reimbursement Quality | 0.328 | -0.0363 | Higher Reimbursement Quality decreases predicted m | |
| State Peer Margin | -0.006 | +0.0290 | Higher State Peer Margin increases predicted margi | |
| Bed Utilization Value | 95144.661 | -0.0258 | Lower Bed Utilization Value decreases predicted ma |
Turnaround: 38%Turnaround possible (38%) but uncertain. Margin improvement depends on improving Revenue/Bed.
Suburban Community Hospit
Archetype
45.6%
Distress Risk
$880K
RCM Opportunity
D
Opportunity Grade
-5.0%
Projected Margin
Cluster: Suburban Community Hospital
Percentile within cluster: P81. 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 |
|---|---|---|---|
| Occupancy Rate | 0.631 | -0.098 | ▼ risk |
| Revenue Per Bed | 150741.390 | +0.084 | ▲ risk |
| Medicaid Day Pct | 0.020 | -0.069 | ▼ risk |
| Medicare Day Pct | 0.033 | -0.050 | ▼ risk |
| Net To Gross Ratio | 0.346 | -0.010 | ▼ risk |
| Beds | 100.000 | -0.007 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $880K
Current margin: -10.8%
Projected margin: -5.0%
Grade: D
Comps: 191
Gap analysis vs P75 peers with 60% closure assumption. Confidence-weighted by lever implementation difficulty.
| Lever | Current | Benchmark | Gap | Impact | Confidence | Timeline |
|---|---|---|---|---|---|---|
| Occupancy Improvement | 0.631 | 0.757 | 12.6% | $830K | 55% | 24mo |
| Net-to-Gross Ratio Improvement | 0.346 | 0.374 | 2.9% | $50K | 65% | 18mo |
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 | 25.7 | [25.0, 75.0] | P32 | 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. |