Jehoshaphat Research short R1 RCM, says stock ‘practically uninvestible’

In a recently published report, Jehoshaphat Research says it is short R1 RCM. “We believe its financial accounting is so misrepresentative, its corporate governance so surprisingly bad, and the reflexivity of its business model so misunderstood that its stock is practically uninvestible today. Our forensic accounting concerns have been reinforced by conversations we’ve had with former RCM and Cloudmed employees. We see idiosyncratic downside beginning to play out in the next several months as accounting games reach a natural exhaustion point on an overleveraged company — and the lockup on 33% of RCM’s shares expires in two months. We believe that it’s entirely reasonable that the stock will revisit the lows of $7 per share following Q3 2022 earnings,” it reads. Shares of R1 RCM are down about 2% to $12.95 in Monday morning trading.