ML Analysis — ST. JOSEPH MEDICAL CENTER
CCN 500030 | 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.
72
/ 100 (B)
Financial Health18/25
RCM Upside15/25
Market Position15/20
Demand Defensibility15/15
Operational Efficiency9/15
Entry Multiple: 11.0x – 13.0x
Est. MOIC: 2.8x
Risk Factors:
Catalysts:
- RCM optimization could add 3-5pp margin
- Strong commercial payer base protects revenue
- Limited competition supports pricing power
Margin Prediction (Trained Ridge Model)
7.5%
R²=0.34 | n=4,907 | Grade B | Actual: 1.9%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-20.8%, 35.8%]. P78 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 3605652.851 | +0.2829 | Higher Revenue/Bed increases predicted margin | |
| Expense/Bed | 3536931.332 | -0.2316 | Higher Expense/Bed decreases predicted margin | |
| Bed Utilization Value | 3346674.650 | +0.0821 | Higher Bed Utilization Value increases predicted m | |
| State Peer Margin | -0.103 | -0.0426 | Lower State Peer Margin decreases predicted margin | |
| Occupancy | 0.928 | +0.0229 | Higher Occupancy increases predicted margin |
Suburban Community Hospit
Archetype
35.5%
Distress Risk
$2.6M
RCM Opportunity
D
Opportunity Grade
2.2%
Projected Margin
Cluster: Suburban Community Hospital
Percentile within cluster: P61. Community hospitals — the largest PE deal category. Focus on RCM improvement and cost optimization at 9-11x.
Nearest Peers
| Hospital | State | Beds |
|---|---|---|
| CLARA MAASS MEDICAL CENTER | NJ | 259 |
| PRESENCE SAINTS MARY & ELIZABETH MED | IL | 266 |
| ADVENTIST HEALTH BAKERSFIELD | CA | 254 |
| BRISTOL REGIONAL MEDICAL CENTER | TN | 244 |
| HOLSTON VALLEY HOSP & MED CTR | TN | 286 |
| SPRINGFIELD REGIONAL MEDICAL CENTER | OH | 230 |
Distress Analysis
Risk: Elevated
National distress rate: 49.3%
WA distress rate: 67.3%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.928 | -0.374 | ▼ risk |
| Revenue Per Bed | 3605652.851 | -0.120 | ▼ risk |
| Medicaid Day Pct | 0.037 | -0.052 | ▼ risk |
| Net To Gross Ratio | 0.301 | -0.030 | ▼ risk |
| Beds | 208.000 | +0.008 | ▲ risk |
| Medicare Day Pct | 0.304 | -0.004 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $2.6M
Current margin: 1.9%
Projected margin: 2.2%
Grade: D
Comps: 36
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 | 0.301 | 0.317 | 1.5% | $1.3M | 65% | 18mo |
| Payer Mix Optimization | 0.659 | 0.741 | 8.1% | $1.2M | 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. |