ML Analysis — STOUGHTON HOSPITAL ASSOCIATION
CCN 521343 | 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.
54
/ 100 (C)
Financial Health16/25
RCM Upside7/25
Market Position11/20
Demand Defensibility7/15
Operational Efficiency13/15
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
Margin Prediction (Trained Ridge Model)
1.3%
R²=0.34 | n=4,907 | Grade B | Actual: 10.2%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-27.0%, 29.6%]. P66 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 2580611.046 | +0.1398 | Higher Revenue/Bed increases predicted margin | |
| Expense/Bed | 2317942.454 | -0.0814 | Higher Expense/Bed decreases predicted margin | |
| State Peer Margin | 0.004 | +0.0371 | Higher State Peer Margin increases predicted margi | |
| Log(Beds) | 3.091 | -0.0298 | Lower Log(Beds) decreases predicted margin | |
| Bed Count | 22.000 | +0.0198 | Higher Bed Count increases predicted margin |
Suburban Community Hospit
Archetype
52.3%
Distress Risk
$5.0M
RCM Opportunity
C
Opportunity Grade
18.9%
Projected Margin
Cluster: Suburban Community Hospital
Percentile within cluster: P48. 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 |
|---|---|---|---|
| Occupancy Rate | 0.305 | +0.204 | ▲ risk |
| Revenue Per Bed | 2580611.045 | -0.059 | ▼ risk |
| Medicaid Day Pct | 0.047 | -0.042 | ▼ risk |
| Medicare Day Pct | 0.498 | +0.029 | ▲ risk |
| Beds | 22.000 | -0.017 | ▼ risk |
| Net To Gross Ratio | 0.378 | +0.004 | ▲ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $5.0M
Current margin: 10.2%
Projected margin: 18.9%
Grade: C
Comps: 84
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 | 0.455 | 0.635 | 18.0% | $2.7M | 50% | 24mo |
| Occupancy Improvement | 0.305 | 0.495 | 19.0% | $1.3M | 55% | 24mo |
| Net-to-Gross Ratio Improvement | 0.378 | 0.529 | 15.0% | $1000K | 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 | 30.2 | [25.0, 75.0] | P59 | 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. |