ML Analysis — WILLIAM R SHARPE JR HOSPITAL
CCN 514012 | 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.
47
/ 100 (C)
Financial Health3/25
RCM Upside20/25
Market Position15/20
Demand Defensibility9/15
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
Margin Prediction (Trained Ridge Model)
-9.4%
R²=0.34 | n=4,907 | Grade B | Actual: -50.0%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-37.7%, 18.9%]. P39 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 36153.415 | -0.2154 | Lower Revenue/Bed decreases predicted margin | |
| Expense/Bed | 593428.535 | +0.1310 | Higher Expense/Bed increases predicted margin | |
| State Peer Margin | -0.003 | +0.0316 | Higher State Peer Margin increases predicted margi | |
| Bed Utilization Value | 32353.840 | -0.0279 | Lower Bed Utilization Value decreases predicted ma | |
| Net-to-Gross | 0.134 | -0.0263 | Lower Net-to-Gross decreases predicted margin |
Turnaround: 34%Turnaround possible (34%) but uncertain. Margin improvement depends on improving Revenue/Bed.
Under-Performing / Distre
Archetype
37.9%
Distress Risk
$175K
RCM Opportunity
D
Opportunity Grade
-47.6%
Projected Margin
Cluster: Under-Performing / Distressed
Percentile within cluster: P98. 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: Elevated
National distress rate: 49.3%
WV distress rate: 41.7%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.895 | -0.343 | ▼ risk |
| Net To Gross Ratio | 0.134 | -0.105 | ▼ risk |
| Revenue Per Bed | 36153.415 | +0.091 | ▲ risk |
| Medicaid Day Pct | 0.023 | -0.066 | ▼ risk |
| Medicare Day Pct | 0.033 | -0.050 | ▼ risk |
| Beds | 200.000 | +0.007 | ▲ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $175K
Current margin: -50.0%
Projected margin: -47.6%
Grade: D
Comps: 15
Gap analysis vs P75 peers with 60% closure assumption. Confidence-weighted by lever implementation difficulty.
| Lever | Current | Benchmark | Gap | Impact | Confidence | Timeline |
|---|---|---|---|---|---|---|
| Net-to-Gross Ratio Improvement | 0.134 | 0.340 | 20.6% | $175K | 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 | 31.8 | [25.0, 75.0] | P69 | 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 | 99.3% | [90.0%, 99.5%] | P5 | Strong — predicted net collection rate is in the top third. |