ML Analysis — MCHS-CHIPPEWA VALLEY
CCN 521314 | 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 Health11/25
RCM Upside13/25
Market Position15/20
Demand Defensibility6/15
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)
0.3%
R²=0.34 | n=4,907 | Grade B | Actual: 5.0%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-28.0%, 28.6%]. P63 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| State Peer Margin | 0.004 | +0.0371 | Higher State Peer Margin increases predicted margi | |
| Log(Beds) | 3.219 | -0.0268 | Lower Log(Beds) decreases predicted margin | |
| Net-to-Gross | 0.571 | +0.0227 | Higher Net-to-Gross increases predicted margin | |
| Bed Count | 25.000 | +0.0193 | Higher Bed Count increases predicted margin | |
| Expense/Bed | 1515071.600 | +0.0175 | Higher Expense/Bed increases predicted margin |
Suburban Community Hospit
Archetype
50.7%
Distress Risk
$2.8M
RCM Opportunity
C
Opportunity Grade
12.1%
Projected Margin
Cluster: Suburban Community Hospital
Percentile within cluster: P44. 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%
WI distress rate: 34.5%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Net To Gross Ratio | 0.571 | +0.090 | ▲ risk |
| Medicaid Day Pct | 0.006 | -0.083 | ▼ risk |
| Medicare Day Pct | 0.546 | +0.038 | ▲ risk |
| Occupancy Rate | 0.494 | +0.029 | ▲ risk |
| Beds | 25.000 | -0.017 | ▼ risk |
| Revenue Per Bed | 1594555.600 | -0.001 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $2.8M
Current margin: 5.0%
Projected margin: 12.1%
Grade: C
Comps: 87
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 | 0.448 | 0.636 | 18.7% | $2.8M | 50% | 24mo |
| Occupancy Improvement | 0.494 | 0.499 | 0.5% | $33K | 55% | 24mo |
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 | 27.4 | [25.0, 75.0] | P40 | 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. |