ML Analysis — SENTARA CAREPLEX HOSPITAL
CCN 490093 | 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 Health17/25
RCM Upside10/25
Market Position17/20
Demand Defensibility12/15
Operational Efficiency7/15
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)
6.5%
R²=0.34 | n=4,907 | Grade B | Actual: 9.3%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-21.8%, 34.8%]. P76 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| State Peer Margin | 0.044 | +0.0666 | Higher State Peer Margin increases predicted margi | |
| Revenue/Bed | 1789793.722 | +0.0294 | Higher Revenue/Bed increases predicted margin | |
| Log(Beds) | 5.130 | +0.0176 | Higher Log(Beds) increases predicted margin | |
| Net-to-Gross | 0.276 | -0.0104 | Lower Net-to-Gross decreases predicted margin | |
| Medicaid % | 0.035 | +0.0066 | Higher Medicaid % increases predicted margin |
Suburban Community Hospit
Archetype
45.3%
Distress Risk
$3.5M
RCM Opportunity
D
Opportunity Grade
10.4%
Projected Margin
Cluster: Suburban Community Hospital
Percentile within cluster: P9. 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%
VA distress rate: 29.6%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Medicaid Day Pct | 0.035 | -0.054 | ▼ risk |
| Occupancy Rate | 0.582 | -0.053 | ▼ risk |
| Net To Gross Ratio | 0.276 | -0.041 | ▼ risk |
| Revenue Per Bed | 1789793.722 | -0.012 | ▼ risk |
| Medicare Day Pct | 0.305 | -0.004 | ▼ risk |
| Beds | 169.000 | +0.003 | ▲ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $3.5M
Current margin: 9.3%
Projected margin: 10.4%
Grade: D
Comps: 47
Gap analysis vs P75 peers with 60% closure assumption. Confidence-weighted by lever implementation difficulty.
| Lever | Current | Benchmark | Gap | Impact | Confidence | Timeline |
|---|---|---|---|---|---|---|
| Occupancy Improvement | 0.582 | 0.795 | 21.3% | $1.4M | 55% | 24mo |
| Net-to-Gross Ratio Improvement | 0.276 | 0.314 | 3.9% | $1.4M | 65% | 18mo |
| Payer Mix Optimization | 0.660 | 0.708 | 4.8% | $712K | 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. |