ML Analysis — KPC PROMISE HOSPITAL OF SALT LAKE
CCN 462004 | 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.
52
/ 100 (C)
Financial Health15/25
RCM Upside7/25
Market Position12/20
Demand Defensibility9/15
Operational Efficiency9/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
Risk Factors:
- Small facility (<50 beds) — limited scale
Catalysts:
- Strong commercial payer base protects revenue
Margin Prediction (Trained Ridge Model)
1.0%
R²=0.34 | n=4,907 | Grade B | Actual: 11.2%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-27.3%, 29.3%]. P65 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 441307.605 | -0.1589 | Lower Revenue/Bed decreases predicted margin | |
| Expense/Bed | 392067.237 | +0.1559 | Higher Expense/Bed increases predicted margin | |
| State Peer Margin | 0.080 | +0.0933 | Higher State Peer Margin increases predicted margi | |
| Bed Utilization Value | 262302.805 | -0.0203 | Lower Bed Utilization Value decreases predicted ma | |
| Bed Count | 38.000 | +0.0173 | Higher Bed Count increases predicted margin |
Suburban Community Hospit
Archetype
53.2%
Distress Risk
$5.7M
RCM Opportunity
A
Opportunity Grade
45.1%
Projected Margin
Cluster: Suburban Community Hospital
Percentile within cluster: P69. 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 |
|---|---|---|---|
| Medicaid Day Pct | 0.205 | +0.116 | ▲ risk |
| Revenue Per Bed | 441307.605 | +0.067 | ▲ risk |
| Occupancy Rate | 0.594 | -0.064 | ▼ risk |
| Net To Gross Ratio | 0.464 | +0.042 | ▲ risk |
| Beds | 38.000 | -0.015 | ▼ risk |
| Medicare Day Pct | 0.373 | +0.008 | ▲ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $5.7M
Current margin: 11.2%
Projected margin: 45.1%
Grade: A
Comps: 26
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 | 0.422 | 0.774 | 35.2% | $5.3M | 50% | 24mo |
| Net-to-Gross Ratio Improvement | 0.464 | 0.670 | 20.6% | $405K | 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 | 26.2 | [25.0, 75.0] | P36 | 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. |