ML Analysis — RALEIGH GENERAL HOSPITAL
CCN 510070 | 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.
52
/ 100 (C)
Financial Health7/25
RCM Upside18/25
Market Position15/20
Demand Defensibility13/15
Operational Efficiency0/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
Risk Factors:
- Negative operating margin
- Expenses exceed revenue
Catalysts:
- RCM optimization could add 3-5pp margin
- Strong commercial payer base protects revenue
- Limited competition supports pricing power
- Volume growth opportunity from low occupancy
Margin Prediction (Trained Ridge Model)
-8.1%
R²=0.34 | n=4,907 | Grade B | Actual: -6.5%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-36.4%, 20.2%]. P42 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 606063.650 | -0.1359 | Lower Revenue/Bed decreases predicted margin | |
| Expense/Bed | 645341.740 | +0.1246 | Higher Expense/Bed increases predicted margin | |
| State Peer Margin | -0.003 | +0.0316 | Higher State Peer Margin increases predicted margi | |
| Log(Beds) | 5.704 | +0.0309 | Higher Log(Beds) increases predicted margin | |
| Reimbursement Quality | 0.102 | +0.0287 | Higher Reimbursement Quality increases predicted m |
Turnaround: 36%Turnaround possible (36%) but uncertain. Margin improvement depends on improving Revenue/Bed.
Under-Performing / Distre
Archetype
56.3%
Distress Risk
$9.3M
RCM Opportunity
D
Opportunity Grade
-1.3%
Projected Margin
Cluster: Under-Performing / Distressed
Percentile within cluster: P90. Deeply negative margins signal severe distress. Evaluate asset-level acquisition at 4-6x normalized EBITDA.
Nearest Peers
| Hospital | State | Beds |
|---|---|---|
| HOLY FAMILY MEMORIAL INC | WI | 58 |
| MIDDLESBORO ARH | KY | 46 |
| ATRIUM HEALTH NAVICENT BALDWIN | GA | 86 |
| BON SECOURS COMMUNITY HOSPITAL | NY | 98 |
| ADVANCED SPECIALTY HOSP. OF TOLEDO | OH | 40 |
| COMMUNITY HEALTH CENTER BRANCH | MI | 75 |
Distress Analysis
Risk: High
National distress rate: 49.3%
WV distress rate: 41.7%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Medicaid Day Pct | 0.226 | +0.137 | ▲ risk |
| Occupancy Rate | 0.389 | +0.126 | ▲ risk |
| Net To Gross Ratio | 0.230 | -0.062 | ▼ risk |
| Revenue Per Bed | 606063.650 | +0.057 | ▲ risk |
| Beds | 300.000 | +0.020 | ▲ risk |
| Medicare Day Pct | 0.331 | +0.001 | ▲ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $9.3M
Current margin: -6.5%
Projected margin: -1.3%
Grade: D
Comps: 1502
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 | 0.443 | 0.751 | 30.8% | $4.6M | 50% | 24mo |
| Occupancy Improvement | 0.389 | 0.777 | 38.8% | $2.6M | 55% | 24mo |
| Net-to-Gross Ratio Improvement | 0.230 | 0.332 | 10.2% | $2.2M | 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 | 25.7 | [25.0, 75.0] | P32 | 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. |