ML Analysis — TACOMA GENERAL ALLENMORE HOSPITAL
CCN 500129 | 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.
70
/ 100 (B)
Financial Health21/25
RCM Upside12/25
Market Position13/20
Demand Defensibility13/15
Operational Efficiency11/15
Entry Multiple: 9.5x – 11.5x
Est. MOIC: 2.3x
Risk Factors:
Catalysts:
- Strong commercial payer base protects revenue
Margin Prediction (Trained Ridge Model)
7.4%
R²=0.34 | n=4,907 | Grade B | Actual: 5.1%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-20.9%, 35.7%]. P78 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 3545063.695 | +0.2744 | Higher Revenue/Bed increases predicted margin | |
| Expense/Bed | 3363025.281 | -0.2101 | Higher Expense/Bed decreases predicted margin | |
| Bed Utilization Value | 3387453.017 | +0.0834 | Higher Bed Utilization Value increases predicted m | |
| State Peer Margin | -0.103 | -0.0426 | Lower State Peer Margin decreases predicted margin | |
| Log(Beds) | 5.924 | +0.0360 | Higher Log(Beds) increases predicted margin |
Suburban Community Hospit
Archetype
35.1%
Distress Risk
$10.3M
RCM Opportunity
D
Opportunity Grade
5.9%
Projected Margin
Cluster: Suburban Community Hospital
Percentile within cluster: P95. 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 | 0.956 | -0.400 | ▼ risk |
| Revenue Per Bed | 3545063.695 | -0.116 | ▼ risk |
| Medicaid Day Pct | 0.046 | -0.043 | ▼ risk |
| Net To Gross Ratio | 0.282 | -0.039 | ▼ risk |
| Beds | 374.000 | +0.030 | ▲ risk |
| Medicare Day Pct | 0.206 | -0.021 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $10.3M
Current margin: 5.1%
Projected margin: 5.9%
Grade: D
Comps: 23
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 | 0.282 | 0.348 | 6.6% | $10.3M | 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 | 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. |