Investability Score
Speculative — only pursue if turnaround thesis is strong and entry multiple reflects risk.
36
/ 100 (D)
Financial Health12/25
RCM Upside11/25
Market Position2/20
Demand Defensibility6/15
Operational Efficiency5/15
Entry Multiple: 6.0x – 8.5x
Est. MOIC: 1.5x
Risk Factors:
- Heavy Medicare dependence (>55%)
- Small facility (<50 beds) — limited scale
Catalysts:
Margin Prediction (Trained Ridge Model)
-0.7%
R²=0.34 | n=4,907 | Grade B | Actual: 8.0%
Ridge regression trained on 4,907 HCRIS hospitals. 90% CI: [-29.0%, 27.6%]. P61 nationally.
| Driver | Value | Effect | Explanation | |
|---|---|---|---|---|
| Revenue/Bed | 494998.409 | -0.1514 | Lower Revenue/Bed decreases predicted margin | |
| Expense/Bed | 455307.386 | +0.1481 | Higher Expense/Bed increases predicted margin | |
| State Peer Margin | -0.006 | +0.0290 | Higher State Peer Margin increases predicted margi | |
| Reimbursement Quality | 0.102 | +0.0286 | Higher Reimbursement Quality increases predicted m | |
| Bed Utilization Value | 375594.683 | -0.0165 | Lower Bed Utilization Value decreases predicted ma |
nan%
Distress Risk
$6.6M
RCM Opportunity
A
Opportunity Grade
38.4%
Projected Margin
Distress Analysis
Risk: Unknown
National distress rate: 49.3%
TX distress rate: 42.8%
Model AUC: 0.629
| Factor | Value | Contribution | Direction |
|---|---|---|---|
| Occupancy Rate | 0.759 | -0.217 | ▼ risk |
| Medicare Day Pct | 0.672 | +0.059 | ▲ risk |
| Medicaid Day Pct | nan | +nan | ▼ risk |
| Revenue Per Bed | 494998.409 | +0.064 | ▲ risk |
| Net To Gross Ratio | 0.311 | -0.026 | ▼ risk |
| Beds | 44.000 | -0.014 | ▼ risk |
RCM Improvement Opportunity
Total (risk-adjusted): $6.6M
Current margin: 8.0%
Projected margin: 38.4%
Grade: A
Comps: 278
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 | 0.328 | 0.735 | 40.8% | $6.1M | 50% | 24mo |
| Net-to-Gross Ratio Improvement | 0.311 | 0.509 | 19.8% | $506K | 65% | 18mo |
Predicted RCM Performance (Public Data Only)
B
RCM Grade
Average RCM profile — some improvement opportunities. Standard diligence scope recommended.
| Metric | Predicted | 90% CI | Percentile | Assessment |
|---|---|---|---|---|
| Denial Rate | 25.0% | [2.0%, 25.0%] | P83 | Below average — denial rate suggests RCM improvement opportu |
| Days in AR | 75.0 | [25.0, 75.0] | P83 | Below average — days in ar suggests RCM improvement opportun |
| 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. |