ML Analysis — PEACE ISLAND MEDICAL CENTER
CCN 501340 | Clustering + Distress + RCM Opportunity
🛡️ Public data only — no PHI permitted on this instance.
Investability Score
Speculative — only pursue if turnaround thesis is strong and entry multiple reflects risk.
39
/ 100 (D)
Financial Health4/25
RCM Upside17/25
Market Position8/20
Demand Defensibility1/15
Operational Efficiency8/15
Entry Multiple: 6.0x – 8.5x
Est. MOIC: 1.5x
Risk Factors:
- Negative operating margin
- Heavy Medicare dependence (>55%)
- Small facility (<50 beds) — limited scale
- Low occupancy (<30%) — demand risk
Catalysts:
- Limited competition supports pricing power
Margin Prediction (Trained Ridge Model)
-14.5%
R²=0.34 | n=4,907 | Grade B | Actual: -4.5%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-42.8%, 13.8%]. P28 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 2606805.600 | +0.1434 | Higher Revenue/Bed increases predicted margin | |
| Expense/Bed | 2725298.500 | -0.1316 | Higher Expense/Bed decreases predicted margin | |
| Log(Beds) | 2.303 | -0.0481 | Lower Log(Beds) decreases predicted margin | |
| State Peer Margin | -0.103 | -0.0426 | Lower State Peer Margin decreases predicted margin | |
| Occupancy | 0.068 | -0.0260 | Lower Occupancy decreases predicted margin |
Turnaround: 26%Low turnaround probability (26%). Structural disadvantages in Revenue/Bed and Expense/Bed.
nan%
Distress Risk
$5.9M
RCM Opportunity
A
Opportunity Grade
18.0%
Projected Margin
Distress Analysis
Risk: Unknown
National distress rate: 49.3%
WA distress rate: 67.3%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.068 | +0.425 | ▲ risk |
| Medicare Day Pct | 0.713 | +0.066 | ▲ risk |
| Medicaid Day Pct | nan | +nan | ▼ risk |
| Net To Gross Ratio | 0.527 | +0.071 | ▲ risk |
| Revenue Per Bed | 2606805.600 | -0.061 | ▼ risk |
| Beds | 10.000 | -0.019 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $5.9M
Current margin: -4.5%
Projected margin: 18.0%
Grade: A
Comps: 12
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 | 0.287 | 0.494 | 20.6% | $3.1M | 50% | 24mo |
| Occupancy Improvement | 0.068 | 0.451 | 38.3% | $2.5M | 55% | 24mo |
| Net-to-Gross Ratio Improvement | 0.527 | 0.612 | 8.5% | $258K | 65% | 18mo |
Predicted RCM Performance (Public Data Only)
B
RCM Grade
Average RCM profile — some improvement opportunities. Standard diligence scope recommended.
| Metric | Predicted | 90% CI | Percentile | Assessment |
|---|---|---|---|---|
| Denial Rate | 25.0% | [2.0%, 25.0%] | P83 | Below average — denial rate suggests RCM improvement opportu |
| Days in AR | 75.0 | [25.0, 75.0] | P83 | Below average — days in ar suggests RCM improvement opportun |
| 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. |