ML Analysis — WETZEL COUNTY HOSPITAL
CCN 510072 | 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.
51
/ 100 (C)
Financial Health12/25
RCM Upside9/25
Market Position15/20
Demand Defensibility7/15
Operational Efficiency7/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
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)
-3.8%
R²=0.34 | n=4,907 | Grade B | Actual: 9.3%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-32.1%, 24.5%]. P52 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Expense/Bed | 1221222.920 | +0.0537 | Higher Expense/Bed increases predicted margin | |
| Revenue/Bed | 1347200.920 | -0.0324 | Lower Revenue/Bed decreases predicted margin | |
| State Peer Margin | -0.003 | +0.0316 | Higher State Peer Margin increases predicted margi | |
| Log(Beds) | 3.219 | -0.0268 | Lower Log(Beds) decreases predicted margin | |
| Bed Count | 25.000 | +0.0193 | Higher Bed Count increases predicted margin |
Suburban Community Hospit
Archetype
50.8%
Distress Risk
$2.5M
RCM Opportunity
C
Opportunity Grade
16.9%
Projected Margin
Cluster: Suburban Community Hospital
Percentile within cluster: P16. 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: High
National distress rate: 49.3%
WV distress rate: 41.7%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.342 | +0.170 | ▲ risk |
| Medicaid Day Pct | 0.010 | -0.079 | ▼ risk |
| Net To Gross Ratio | 0.289 | -0.035 | ▼ risk |
| Beds | 25.000 | -0.017 | ▼ risk |
| Revenue Per Bed | 1347200.920 | +0.014 | ▲ risk |
| Medicare Day Pct | 0.368 | +0.007 | ▲ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $2.5M
Current margin: 9.3%
Projected margin: 16.9%
Grade: C
Comps: 30
Gap analysis vs P75 peers with 60% closure assumption. Confidence-weighted by lever implementation difficulty.
| Lever | Current | Benchmark | Gap | Impact | Confidence | Timeline |
|---|---|---|---|---|---|---|
| Occupancy Improvement | 0.342 | 0.572 | 23.0% | $1.5M | 55% | 24mo |
| Net-to-Gross Ratio Improvement | 0.289 | 0.547 | 25.9% | $1.0M | 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 | 30.6 | [25.0, 75.0] | P62 | 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. |