ML Analysis — WARREN MEMORIAL HOSPITAL
CCN 490033 | 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.
59
/ 100 (C)
Financial Health8/25
RCM Upside19/25
Market Position17/20
Demand Defensibility8/15
Operational Efficiency8/15
Entry Multiple: 9.5x – 11.5x
Est. MOIC: 2.3x
Risk Factors:
- Negative operating margin
- Small facility (<50 beds) — limited scale
- Expenses exceed revenue
Catalysts:
- Strong commercial payer base protects revenue
- Limited competition supports pricing power
Margin Prediction (Trained Ridge Model)
0.6%
R²=0.34 | n=4,907 | Grade B | Actual: -6.3%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-27.7%, 28.9%]. P64 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 2124310.304 | +0.0761 | Higher Revenue/Bed increases predicted margin | |
| Expense/Bed | 2259231.174 | -0.0742 | Higher Expense/Bed decreases predicted margin | |
| State Peer Margin | 0.044 | +0.0666 | Higher State Peer Margin increases predicted margi | |
| Bed Count | 46.000 | +0.0160 | Higher Bed Count increases predicted margin | |
| Log(Beds) | 3.829 | -0.0127 | Lower Log(Beds) decreases predicted margin |
Turnaround: 51%Turnaround possible (51%) but uncertain. Margin improvement depends on Revenue/Bed.
Suburban Community Hospit
Archetype
51.2%
Distress Risk
$3.7M
RCM Opportunity
D
Opportunity Grade
-2.6%
Projected Margin
Cluster: Suburban Community Hospital
Percentile within cluster: P28. 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%
VA distress rate: 29.6%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.393 | +0.123 | ▲ risk |
| Medicaid Day Pct | 0.023 | -0.066 | ▼ risk |
| Net To Gross Ratio | 0.463 | +0.042 | ▲ risk |
| Revenue Per Bed | 2124310.304 | -0.032 | ▼ risk |
| Medicare Day Pct | 0.457 | +0.022 | ▲ risk |
| Beds | 46.000 | -0.014 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $3.7M
Current margin: -6.3%
Projected margin: -2.6%
Grade: D
Comps: 44
Gap analysis vs P75 peers with 60% closure assumption. Confidence-weighted by lever implementation difficulty.
| Lever | Current | Benchmark | Gap | Impact | Confidence | Timeline |
|---|---|---|---|---|---|---|
| Occupancy Improvement | 0.393 | 0.733 | 34.0% | $2.2M | 55% | 24mo |
| Payer Mix Optimization | 0.521 | 0.618 | 9.8% | $1.5M | 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 | 28.0 | [25.0, 75.0] | P44 | 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. |