ML Analysis — WASHAKIE MEDICAL CENTER
CCN 531306 | Clustering + Distress + RCM Opportunity
🛡️ Public data only — no PHI permitted on this instance.
Investability Score
Speculative — only pursue if turnaround thesis is strong and entry multiple reflects risk.
42
/ 100 (D)
Financial Health5/25
RCM Upside17/25
Market Position13/20
Demand Defensibility2/15
Operational Efficiency6/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
Risk Factors:
- Negative operating margin
- Heavy Medicare dependence (>55%)
- Small facility (<50 beds) — limited scale
- Low occupancy (<30%) — demand risk
Catalysts:
- Limited competition supports pricing power
Margin Prediction (Trained Ridge Model)
-11.0%
R²=0.34 | n=4,907 | Grade B | Actual: -1.7%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-39.3%, 17.3%]. P35 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Log(Beds) | 2.890 | -0.0345 | Lower Log(Beds) decreases predicted margin | |
| Net-to-Gross | 0.617 | +0.0278 | Higher Net-to-Gross increases predicted margin | |
| State Peer Margin | -0.075 | -0.0218 | Lower State Peer Margin decreases predicted margin | |
| Bed Count | 18.000 | +0.0204 | Higher Bed Count increases predicted margin | |
| Bed Utilization Value | 314970.386 | -0.0185 | Lower Bed Utilization Value decreases predicted ma |
Turnaround: 32%Turnaround possible (32%) but uncertain. Margin improvement depends on improving Log(Beds).
Rural/Critical Access
Archetype
59.8%
Distress Risk
$2.8M
RCM Opportunity
C
Opportunity Grade
8.2%
Projected Margin
Cluster: Rural/Critical Access
Percentile within cluster: P7. 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%
WY distress rate: 55.2%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.202 | +0.300 | ▲ risk |
| Net To Gross Ratio | 0.617 | +0.111 | ▲ risk |
| Medicare Day Pct | 0.613 | +0.049 | ▲ risk |
| Medicaid Day Pct | 0.071 | -0.018 | ▼ risk |
| Beds | 18.000 | -0.017 | ▼ risk |
| Revenue Per Bed | 1562957.278 | +0.001 | ▲ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $2.8M
Current margin: -1.7%
Projected margin: 8.2%
Grade: C
Comps: 17
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 | 0.316 | 0.433 | 11.8% | $1.8M | 50% | 24mo |
| Occupancy Improvement | 0.202 | 0.334 | 13.2% | $875K | 55% | 24mo |
| Net-to-Gross Ratio Improvement | 0.617 | 0.666 | 4.9% | $162K | 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 | 30.9 | [25.0, 75.0] | P63 | 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. |