ML Analysis — KITTITAS VALLEY COMMUNITY HOSPITAL
CCN 501333 | 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.
62
/ 100 (B)
Financial Health13/25
RCM Upside14/25
Market Position15/20
Demand Defensibility8/15
Operational Efficiency11/15
Entry Multiple: 9.5x – 11.5x
Est. MOIC: 2.3x
Risk Factors:
- Small facility (<50 beds) — limited scale
Catalysts:
- Strong commercial payer base protects revenue
- Limited competition supports pricing power
Margin Prediction (Trained Ridge Model)
1.8%
R²=0.34 | n=4,907 | Grade B | Actual: 2.3%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-26.5%, 30.1%]. P66 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 4838389.040 | +0.4549 | Higher Revenue/Bed increases predicted margin | |
| Expense/Bed | 4726094.720 | -0.3781 | Higher Expense/Bed decreases predicted margin | |
| Bed Utilization Value | 2321896.505 | +0.0481 | Higher Bed Utilization Value increases predicted m | |
| State Peer Margin | -0.103 | -0.0426 | Lower State Peer Margin decreases predicted margin | |
| Reimbursement Quality | 0.304 | -0.0295 | Higher Reimbursement Quality decreases predicted m |
Suburban Community Hospit
Archetype
45.9%
Distress Risk
$2.7M
RCM Opportunity
D
Opportunity Grade
4.6%
Projected Margin
Cluster: Suburban Community Hospital
Percentile within cluster: P75. 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%
WA distress rate: 67.3%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Revenue Per Bed | 4838389.040 | -0.192 | ▼ risk |
| Net To Gross Ratio | 0.563 | +0.087 | ▲ risk |
| Medicaid Day Pct | 0.011 | -0.078 | ▼ risk |
| Occupancy Rate | 0.480 | +0.042 | ▲ risk |
| Medicare Day Pct | 0.450 | +0.021 | ▲ risk |
| Beds | 25.000 | -0.017 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $2.7M
Current margin: 2.3%
Projected margin: 4.6%
Grade: D
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 | 0.539 | 0.629 | 9.0% | $1.4M | 50% | 24mo |
| Net-to-Gross Ratio Improvement | 0.563 | 0.613 | 5.0% | $703K | 65% | 18mo |
| Occupancy Improvement | 0.480 | 0.582 | 10.2% | $675K | 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 | 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. |