ML Analysis — TEXAS HEALTH HOSPITAL MANSFIELD
CCN 670309 | 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 Health4/25
RCM Upside19/25
Market Position15/20
Demand Defensibility5/15
Operational Efficiency0/15
Entry Multiple: 8.0x – 10.0x
Est. MOIC: 1.9x
Risk Factors:
- Negative operating margin
- Low occupancy (<30%) — demand risk
- Expenses exceed revenue
Catalysts:
- Strong commercial payer base protects revenue
- Limited competition supports pricing power
Margin Prediction (Trained Ridge Model)
-12.0%
R²=0.34 | n=4,907 | Grade B | Actual: -39.5%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-40.3%, 16.3%]. P33 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 808223.373 | -0.1076 | Lower Revenue/Bed decreases predicted margin | |
| Expense/Bed | 1127550.237 | +0.0652 | Higher Expense/Bed increases predicted margin | |
| State Peer Margin | -0.006 | +0.0290 | Higher State Peer Margin increases predicted margi | |
| Bed Utilization Value | 202665.717 | -0.0222 | Lower Bed Utilization Value decreases predicted ma | |
| Occupancy | 0.251 | -0.0156 | Lower Occupancy decreases predicted margin |
Turnaround: 30%Low turnaround probability (30%). Structural disadvantages in Revenue/Bed and Expense/Bed.
Under-Performing / Distre
Archetype
54.7%
Distress Risk
$4.9M
RCM Opportunity
B
Opportunity Grade
-29.2%
Projected Margin
Cluster: Under-Performing / Distressed
Percentile within cluster: P19. Deeply negative margins signal severe distress. Evaluate asset-level acquisition at 4-6x normalized EBITDA.
Nearest Peers
| Hospital | State | Beds |
|---|---|---|
| HOLY FAMILY MEMORIAL INC | WI | 58 |
| MIDDLESBORO ARH | KY | 46 |
| ATRIUM HEALTH NAVICENT BALDWIN | GA | 86 |
| BON SECOURS COMMUNITY HOSPITAL | NY | 98 |
| ADVANCED SPECIALTY HOSP. OF TOLEDO | OH | 40 |
| COMMUNITY HEALTH CENTER BRANCH | MI | 75 |
Distress Analysis
Risk: High
National distress rate: 49.3%
TX distress rate: 42.8%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.251 | +0.255 | ▲ risk |
| Net To Gross Ratio | 0.244 | -0.055 | ▼ risk |
| Revenue Per Bed | 808223.373 | +0.046 | ▲ risk |
| Medicare Day Pct | 0.141 | -0.032 | ▼ risk |
| Medicaid Day Pct | 0.103 | +0.014 | ▲ risk |
| Beds | 59.000 | -0.012 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $4.9M
Current margin: -39.5%
Projected margin: -29.2%
Grade: B
Comps: 230
Gap analysis vs P75 peers with 60% closure assumption. Confidence-weighted by lever implementation difficulty.
| Lever | Current | Benchmark | Gap | Impact | Confidence | Timeline |
|---|---|---|---|---|---|---|
| Occupancy Improvement | 0.251 | 0.724 | 47.4% | $3.1M | 55% | 24mo |
| Net-to-Gross Ratio Improvement | 0.244 | 0.498 | 25.4% | $1.4M | 65% | 18mo |
| Payer Mix Optimization | 0.756 | 0.779 | 2.4% | $354K | 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 | 32.5 | [25.0, 75.0] | P72 | 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. |