ML Analysis — OCONTO HOSPITAL & MEDICAL CENTER
CCN 521356 | Clustering + Distress + RCM Opportunity
🛡️ Public data only — no PHI permitted on this instance.
Investability Score
Buy — solid fundamentals with identifiable value creation levers. Proceed to detailed diligence.
64
/ 100 (B)
Financial Health14/25
RCM Upside15/25
Market Position15/20
Demand Defensibility8/15
Operational Efficiency11/15
Entry Multiple: 9.5x – 11.5x
Est. MOIC: 2.3x
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)
17.4%
R²=0.34 | n=4,907 | Grade B | Actual: 1.1%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-10.9%, 45.7%]. P91 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 8041036.500 | +0.9020 | Higher Revenue/Bed increases predicted margin | |
| Expense/Bed | 7948738.900 | -0.7751 | Higher Expense/Bed decreases predicted margin | |
| Bed Utilization Value | 3824449.141 | +0.0979 | Higher Bed Utilization Value increases predicted m | |
| Log(Beds) | 2.303 | -0.0481 | Lower Log(Beds) decreases predicted margin | |
| State Peer Margin | 0.004 | +0.0371 | Higher State Peer Margin increases predicted margi |
Suburban Community Hospit
Archetype
39.6%
Distress Risk
$2.3M
RCM Opportunity
D
Opportunity Grade
4.0%
Projected Margin
Cluster: Suburban Community Hospital
Percentile within cluster: P99. 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: Elevated
National distress rate: 49.3%
WI distress rate: 34.5%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Revenue Per Bed | 8041036.500 | -0.381 | ▼ risk |
| Medicaid Day Pct | 0.003 | -0.086 | ▼ risk |
| Occupancy Rate | 0.476 | +0.046 | ▲ risk |
| Net To Gross Ratio | 0.440 | +0.032 | ▲ risk |
| Beds | 10.000 | -0.019 | ▼ risk |
| Medicare Day Pct | 0.399 | +0.012 | ▲ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $2.3M
Current margin: 1.1%
Projected margin: 4.0%
Grade: D
Comps: 16
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 | 0.440 | 0.547 | 10.7% | $1.0M | 65% | 18mo |
| Occupancy Improvement | 0.476 | 0.582 | 10.6% | $699K | 55% | 24mo |
| Payer Mix Optimization | 0.598 | 0.637 | 3.9% | $591K | 50% | 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 | 31.2 | [25.0, 75.0] | P65 | 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. |