ML Analysis — GUNNISON VALLEY HOSPITAL
CCN 461306 | Clustering + Distress + RCM Opportunity
🛡️ Public data only — no PHI permitted on this instance.
Investability Score
Buy — solid fundamentals with identifiable value creation levers. Proceed to detailed diligence.
64
/ 100 (B)
Financial Health10/25
RCM Upside19/25
Market Position18/20
Demand Defensibility7/15
Operational Efficiency10/15
Entry Multiple: 9.5x – 11.5x
Est. MOIC: 2.3x
Risk Factors:
- Negative operating margin
- Small facility (<50 beds) — limited scale
- Low occupancy (<30%) — demand risk
- Expenses exceed revenue
Catalysts:
- Strong commercial payer base protects revenue
- Limited competition supports pricing power
Margin Prediction (Trained Ridge Model)
5.5%
R²=0.34 | n=4,907 | Grade B | Actual: -6.4%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-22.8%, 33.8%]. P75 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 5214896.840 | +0.5075 | Higher Revenue/Bed increases predicted margin | |
| Expense/Bed | 5546695.640 | -0.4791 | Higher Expense/Bed decreases predicted margin | |
| State Peer Margin | 0.080 | +0.0933 | Higher State Peer Margin increases predicted margi | |
| Net-to-Gross | 0.771 | +0.0451 | Higher Net-to-Gross increases predicted margin | |
| Reimbursement Quality | 0.332 | -0.0375 | Higher Reimbursement Quality decreases predicted m |
Turnaround: 60%Turnaround possible (60%) but uncertain. Margin improvement depends on Revenue/Bed.
Suburban Community Hospit
Archetype
55.1%
Distress Risk
$5.7M
RCM Opportunity
D
Opportunity Grade
-2.0%
Projected Margin
Cluster: Suburban Community Hospital
Percentile within cluster: P91. 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: High
National distress rate: 49.3%
UT distress rate: 25.0%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.266 | +0.240 | ▲ risk |
| Revenue Per Bed | 5214896.840 | -0.215 | ▼ risk |
| Net To Gross Ratio | 0.771 | +0.179 | ▲ risk |
| Medicare Day Pct | 0.460 | +0.023 | ▲ risk |
| Medicaid Day Pct | 0.110 | +0.021 | ▲ risk |
| Beds | 25.000 | -0.017 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $5.7M
Current margin: -6.4%
Projected margin: -2.0%
Grade: D
Comps: 28
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 | 0.430 | 0.757 | 32.7% | $4.9M | 50% | 24mo |
| Occupancy Improvement | 0.266 | 0.390 | 12.4% | $817K | 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 | 27.3 | [25.0, 75.0] | P40 | 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. |