ML Analysis — SUNRISE HAVEN
CCN 501992 | 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 Health3/25
RCM Upside20/25
Market Position2/20
Demand Defensibility10/15
Operational Efficiency4/15
Entry Multiple: 6.0x – 8.5x
Est. MOIC: 1.5x
Risk Factors:
- Negative operating margin
- Small facility (<50 beds) — limited scale
- Expenses exceed revenue
Catalysts:
Margin Prediction (Trained Ridge Model)
-19.3%
R²=0.34 | n=4,907 | Grade B | Actual: -50.0%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-47.6%, 9.0%]. P22 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 146874.000 | -0.2000 | Lower Revenue/Bed decreases predicted margin | |
| Expense/Bed | 332985.600 | +0.1631 | Higher Expense/Bed increases predicted margin | |
| Reimbursement Quality | 0.565 | -0.1044 | Higher Reimbursement Quality decreases predicted m | |
| Log(Beds) | 1.609 | -0.0642 | Lower Log(Beds) decreases predicted margin | |
| Net-to-Gross | 0.869 | +0.0561 | Higher Net-to-Gross increases predicted margin |
Turnaround: 20%Low turnaround probability (20%). Structural disadvantages in Revenue/Bed and Expense/Bed.
nan%
Distress Risk
$126K
RCM Opportunity
A
Opportunity Grade
-32.8%
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 | 0.769 | -0.226 | ▼ risk |
| Medicare Day Pct | 0.351 | +0.004 | ▲ risk |
| Medicaid Day Pct | nan | +nan | ▼ risk |
| Net To Gross Ratio | 0.869 | +0.223 | ▲ risk |
| Revenue Per Bed | 146874.000 | +0.085 | ▲ risk |
| Beds | 5.000 | -0.019 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $126K
Current margin: -50.0%
Projected margin: -32.8%
Grade: A
Comps: 50
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 | 0.649 | 0.658 | 0.8% | $126K | 50% | 24mo |
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. |