ML Analysis — BAYLOR S&W MEDICAL CENTER - MCKINNEY
CCN 670082 | 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.
60
/ 100 (C)
Financial Health18/25
RCM Upside7/25
Market Position15/20
Demand Defensibility11/15
Operational Efficiency9/15
Entry Multiple: 9.5x – 11.5x
Est. MOIC: 2.3x
Risk Factors:
Catalysts:
- Strong commercial payer base protects revenue
- Limited competition supports pricing power
Margin Prediction (Trained Ridge Model)
4.5%
R²=0.34 | n=4,907 | Grade B | Actual: 12.8%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-23.8%, 32.8%]. P73 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Expense/Bed | 1322610.598 | +0.0412 | Higher Expense/Bed increases predicted margin | |
| State Peer Margin | -0.006 | +0.0290 | Higher State Peer Margin increases predicted margi | |
| Log(Beds) | 5.242 | +0.0202 | Higher Log(Beds) increases predicted margin | |
| Occupancy | 0.776 | +0.0142 | Higher Occupancy increases predicted margin | |
| Bed Utilization Value | 1177223.918 | +0.0101 | Higher Bed Utilization Value increases predicted m |
Suburban Community Hospit
Archetype
40.7%
Distress Risk
$1.4M
RCM Opportunity
D
Opportunity Grade
13.3%
Projected Margin
Cluster: Suburban Community Hospital
Percentile within cluster: P23. Community hospitals — the largest PE deal category. Focus on RCM improvement and cost optimization at 9-11x.
Nearest Peers
| Hospital | State | Beds |
|---|---|---|
| CLARA MAASS MEDICAL CENTER | NJ | 259 |
| PRESENCE SAINTS MARY & ELIZABETH MED | IL | 266 |
| ADVENTIST HEALTH BAKERSFIELD | CA | 254 |
| BRISTOL REGIONAL MEDICAL CENTER | TN | 244 |
| HOLSTON VALLEY HOSP & MED CTR | TN | 286 |
| SPRINGFIELD REGIONAL MEDICAL CENTER | OH | 230 |
Distress Analysis
Risk: Elevated
National distress rate: 49.3%
TX distress rate: 42.8%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.776 | -0.233 | ▼ risk |
| Medicaid Day Pct | 0.010 | -0.079 | ▼ risk |
| Net To Gross Ratio | 0.285 | -0.037 | ▼ risk |
| Medicare Day Pct | 0.260 | -0.011 | ▼ risk |
| Beds | 189.000 | +0.005 | ▲ risk |
| Revenue Per Bed | 1517306.429 | +0.004 | ▲ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $1.4M
Current margin: 12.8%
Projected margin: 13.3%
Grade: D
Comps: 151
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 | 0.730 | 0.824 | 9.4% | $1.4M | 50% | 24mo |
| Net-to-Gross Ratio Improvement | 0.285 | 0.286 | 0.1% | $43K | 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 | 25.0 | [25.0, 75.0] | P0 | 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. |