Enhancing Credit2B’s Hospital Bankruptcy Prediction Score using Healthcare Data

Non-traditional sources of Big Data are becoming the new norm, and the finance industry and every CFO has this front and center on their organization’s agenda. Credit2B is excited to announce the use of public healthcare data, made available by the Centers for Medicare and Medicaid Services (CMS), in our Bankruptcy Prediction Score, has lead to an improvement in its bankruptcy prediction rate by up to 8%. This date is based on a hospital’s performance that results in penalties and fines instituted for claims on Medicare.

Utilizing advanced technologies like Big Data and Machine Learning has enabled us to process and analyze complex of data sets that were previously very difficult for analysts to manually study. We are now able to include those factors into our credit risk scores, driven by our continued efforts to improve risk assessment by expanding into industry-specific data modeling. Click here to find out more about our investments and efforts in this field.


With the addition of hospital performance metrics like readmission rates (cases where patients return because of inadequate or incorrect treatment resulting in higher costs to the hospital process) we know a repeat set of issues is going to create a financial issue downstream.  Similarly, knowing geographic information like distance to the nearest hospital with comparable medical treatments available gives you an idea of over-supply in an area, resulting in lower utilization levels.  This too helps assess risk and enables us to better judge the financial stability of the hospitals. These elements act as additional inputs to the machine learning model and significantly improve accuracy, thereby leading to scores that are even more predictive of bankruptcy. The figure depicts this improvement obtained by including CMS data in the form of an ROC curve, which is a standard metric used to judge the accuracy of our scoring model. To understand the results in-depth, click here to find out more from our published research content.

This enhanced data will allow our clients to make better credit decisions when dealing with the healthcare industry. Quoting Shyarsh Desai, Credit2B CEO, “We have dramatically increased the application of advanced technologies and now in search of quality industry specific data that would improve the predictiveness of our scores.  Our clients in media, construction and other sectors are already helping us identify better ways to create value”.

We remain highly focused towards expanding our risk assessment models to cover more industries and incorporate more industry-specific data sets to provide the most comprehensive and reliable credit management solutions to our clients.  So if you have a question, an industry-specific need or want to share any data about what is happening at your company and within  your industry, click here.