ML Analysis — WESTERN WISCONSIN HEALTH
CCN 521347 | 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.
53
/ 100 (C)
Financial Health8/25
RCM Upside17/25
Market Position13/20
Demand Defensibility7/15
Operational Efficiency8/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
Risk Factors:
- Negative operating margin
- Small facility (<50 beds) — limited scale
Catalysts:
- Strong commercial payer base protects revenue
- Limited competition supports pricing power
Margin Prediction (Trained Ridge Model)
-1.7%
R²=0.34 | n=4,907 | Grade B | Actual: -1.1%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-30.0%, 26.6%]. P58 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 2523535.920 | +0.1318 | Higher Revenue/Bed increases predicted margin | |
| Expense/Bed | 2551621.480 | -0.1102 | Higher Expense/Bed decreases predicted margin | |
| State Peer Margin | 0.004 | +0.0371 | Higher State Peer Margin increases predicted margi | |
| Net-to-Gross | 0.650 | +0.0315 | Higher Net-to-Gross increases predicted margin | |
| Reimbursement Quality | 0.308 | -0.0307 | Higher Reimbursement Quality decreases predicted m |
Turnaround: 47%Turnaround possible (47%) but uncertain. Margin improvement depends on Revenue/Bed.
Rural/Critical Access
Archetype
54.5%
Distress Risk
$3.6M
RCM Opportunity
D
Opportunity Grade
4.6%
Projected Margin
Cluster: Rural/Critical Access
Percentile within cluster: P41. Rural/small hospitals face structural headwinds. Evaluate CAH conversion, telehealth, and rural health funding.
Nearest Peers
| Hospital | State | Beds |
|---|---|---|
| BRECKINRIDGE HEALTH INC | KY | 25 |
| SHERIDAN MEMORIAL HOSPITAL | MT | 19 |
| DAYTON GENERAL HOSPITAL | WA | 25 |
| BLUE MOUNTAIN HOSPITAL DISTRICT | OR | 16 |
| COMMUNITY HOSPITAL | WY | 25 |
| CARLE EUREKA HOSPITAL | IL | 25 |
Distress Analysis
Risk: High
National distress rate: 49.3%
WI distress rate: 34.5%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.322 | +0.189 | ▲ risk |
| Net To Gross Ratio | 0.650 | +0.125 | ▲ risk |
| Medicaid Day Pct | 0.027 | -0.062 | ▼ risk |
| Revenue Per Bed | 2523535.920 | -0.056 | ▼ risk |
| Medicare Day Pct | 0.499 | +0.030 | ▲ risk |
| Beds | 25.000 | -0.017 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $3.6M
Current margin: -1.1%
Projected margin: 4.6%
Grade: D
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 | 0.474 | 0.636 | 16.2% | $2.4M | 50% | 24mo |
| Occupancy Improvement | 0.322 | 0.499 | 17.7% | $1.2M | 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 | 27.8 | [25.0, 75.0] | P43 | 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. |