R1 RCM initiated with a Buy at Canaccord

Canaccord analyst Richard Close initiated coverage of R1 RCM with a Buy rating and $14 price target. R1’s flagship solution offers health systems and physician groups an end-to-end, fully outsourced solution to manage all aspects of revenue cycle operations, said Close, who notes that health systems are increasingly turning to fully outsourced revenue cycle solutions with controlling costs becoming more challenging in the current labor market and broader economic environment. While he acknowledges operational concerns over recent months, Close sees these concerns as "a blip on the radar in the big picture" given his belief that R1 has "set the foundation for market leadership in an evolving space for years to come" with the addition of Cloudmed.