ML Analysis — LONE PEAK HOSPITAL
CCN 460060 | 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.
58
/ 100 (C)
Financial Health19/25
RCM Upside5/25
Market Position19/20
Demand Defensibility7/15
Operational Efficiency9/15
Entry Multiple: 9.5x – 11.5x
Est. MOIC: 2.3x
Risk Factors:
Catalysts:
- Strong commercial payer base protects revenue
- Limited competition supports pricing power
Margin Prediction (Trained Ridge Model)
13.1%
R²=0.34 | n=4,907 | Grade B | Actual: 25.2%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-15.2%, 41.4%]. P86 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| State Peer Margin | 0.080 | +0.0933 | Higher State Peer Margin increases predicted margi | |
| Revenue/Bed | 2182448.393 | +0.0842 | Higher Revenue/Bed increases predicted margin | |
| Net-to-Gross | 0.230 | -0.0155 | Lower Net-to-Gross decreases predicted margin | |
| Bed Count | 61.000 | +0.0137 | Higher Bed Count increases predicted margin | |
| Commercial % | 0.904 | +0.0130 | Higher Commercial % increases predicted margin |
Suburban Community Hospit
Archetype
44.5%
Distress Risk
$4.1M
RCM Opportunity
D
Opportunity Grade
28.3%
Projected Margin
Cluster: Suburban Community Hospital
Percentile within cluster: P80. 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 |
|---|---|---|---|
| Medicaid Day Pct | 0.026 | -0.063 | ▼ risk |
| Net To Gross Ratio | 0.230 | -0.062 | ▼ risk |
| Medicare Day Pct | 0.071 | -0.044 | ▼ risk |
| Revenue Per Bed | 2182448.393 | -0.036 | ▼ risk |
| Occupancy Rate | 0.500 | +0.023 | ▲ risk |
| Beds | 61.000 | -0.012 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $4.1M
Current margin: 25.2%
Projected margin: 28.3%
Grade: D
Comps: 25
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 | 0.230 | 0.464 | 23.4% | $3.6M | 65% | 18mo |
| Occupancy Improvement | 0.500 | 0.568 | 6.8% | $447K | 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 | 25.4 | [25.0, 75.0] | P29 | 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. |