ML Analysis — TIMPANOGOS REGIONAL HOSPITAL
CCN 460052 | 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.
55
/ 100 (C)
Financial Health19/25
RCM Upside5/25
Market Position15/20
Demand Defensibility7/15
Operational Efficiency9/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
Risk Factors:
Catalysts:
- Strong commercial payer base protects revenue
- Volume growth opportunity from low occupancy
Margin Prediction (Trained Ridge Model)
8.6%
R²=0.34 | n=4,907 | Grade B | Actual: 38.3%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-19.7%, 36.9%]. P80 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Expense/Bed | 822787.632 | +0.1028 | Higher Expense/Bed increases predicted margin | |
| State Peer Margin | 0.080 | +0.0933 | Higher State Peer Margin increases predicted margi | |
| Revenue/Bed | 1334159.342 | -0.0342 | Lower Revenue/Bed decreases predicted margin | |
| Net-to-Gross | 0.263 | -0.0119 | Lower Net-to-Gross decreases predicted margin | |
| Commercial % | 0.829 | +0.0100 | Higher Commercial % increases predicted margin |
Suburban Community Hospit
Archetype
49.6%
Distress Risk
$4.6M
RCM Opportunity
D
Opportunity Grade
41.3%
Projected Margin
Cluster: Suburban Community Hospital
Percentile within cluster: P92. Community hospitals — the largest PE deal category. Focus on RCM improvement and cost optimization at 9-11x.
Nearest Peers
| Hospital | State | Beds |
|---|---|---|
| PROMEDICA HICKMAN HOSPITAL | MI | 58 |
| WATAUGA MEDICAL CENTER | NC | 95 |
| ST LUKES HOSPITAL - EASTON CAMPUS | PA | 29 |
| CULPEPER MEMORIAL HOSPITAL | VA | 70 |
| SOUTHSIDE COMMUNITY HOSPITAL | VA | 80 |
| SPECTRUM HEALTH LUDINGTON | MI | 45 |
Distress Analysis
Risk: Elevated
National distress rate: 49.3%
UT distress rate: 25.0%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.430 | +0.088 | ▲ risk |
| Net To Gross Ratio | 0.263 | -0.047 | ▼ risk |
| Medicare Day Pct | 0.082 | -0.042 | ▼ risk |
| Revenue Per Bed | 1334159.342 | +0.014 | ▲ risk |
| Beds | 117.000 | -0.004 | ▼ risk |
| Medicaid Day Pct | 0.090 | +0.001 | ▲ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $4.6M
Current margin: 38.3%
Projected margin: 41.3%
Grade: D
Comps: 15
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 | 0.263 | 0.442 | 17.9% | $3.3M | 65% | 18mo |
| Occupancy Improvement | 0.430 | 0.565 | 13.5% | $892K | 55% | 24mo |
| Payer Mix Optimization | 0.829 | 0.857 | 2.8% | $422K | 50% | 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. |