ML Analysis — DAYTON GENERAL HOSPITAL
CCN 501302 | 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.
46
/ 100 (C)
Financial Health3/25
RCM Upside19/25
Market Position13/20
Demand Defensibility5/15
Operational Efficiency6/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
Risk Factors:
- Negative operating margin
- Heavy Medicare dependence (>55%)
- 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)
-13.5%
R²=0.34 | n=4,907 | Grade B | Actual: -12.8%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-41.8%, 14.8%]. P30 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 1141389.800 | -0.0611 | Lower Revenue/Bed decreases predicted margin | |
| Expense/Bed | 1287174.440 | +0.0456 | Higher Expense/Bed increases predicted margin | |
| State Peer Margin | -0.103 | -0.0426 | Lower State Peer Margin decreases predicted margin | |
| Net-to-Gross | 0.726 | +0.0401 | Higher Net-to-Gross increases predicted margin | |
| Log(Beds) | 3.219 | -0.0268 | Lower Log(Beds) decreases predicted margin |
Turnaround: 28%Low turnaround probability (28%). Structural disadvantages in Revenue/Bed and Expense/Bed.
Rural/Critical Access
Archetype
58.7%
Distress Risk
$5.7M
RCM Opportunity
A
Opportunity Grade
7.3%
Projected Margin
Cluster: Rural/Critical Access
Percentile within cluster: P0. Rural/small hospitals face structural headwinds. Evaluate CAH conversion, telehealth, and rural health funding.
Nearest Peers
| Hospital | State | Beds |
|---|---|---|
| BRECKINRIDGE HEALTH INC | KY | 25 |
| SHERIDAN MEMORIAL HOSPITAL | MT | 19 |
| BLUE MOUNTAIN HOSPITAL DISTRICT | OR | 16 |
| COMMUNITY HOSPITAL | WY | 25 |
| CARLE EUREKA HOSPITAL | IL | 25 |
| ASCENSION ST THOMAS THREE RIVERS | TN | 25 |
Distress Analysis
Risk: High
National distress rate: 49.3%
WA distress rate: 67.3%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.321 | +0.189 | ▲ risk |
| Net To Gross Ratio | 0.726 | +0.159 | ▲ risk |
| Medicare Day Pct | 0.568 | +0.041 | ▲ risk |
| Revenue Per Bed | 1141389.800 | +0.026 | ▲ risk |
| Medicaid Day Pct | 0.069 | -0.020 | ▼ risk |
| Beds | 25.000 | -0.017 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $5.7M
Current margin: -12.8%
Projected margin: 7.3%
Grade: A
Comps: 42
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 | 0.363 | 0.629 | 26.7% | $4.0M | 50% | 24mo |
| Occupancy Improvement | 0.321 | 0.582 | 26.1% | $1.7M | 55% | 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 | 29.3 | [25.0, 75.0] | P53 | 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. |