R1 RCM initiated with a Buy at Citi

Citi initiated coverage of R1 RCM with a Buy rating and $20 price target. R1 has built the most complete solution-set to tackle a perennial provider pain-point: revenue cycle management, the analyst tells investors in a research note. The firm views outsourcing revenue cycle management as “low hanging fruit” as “providers pinch pennies amid labor shortages, increasing coding complexity, payor delays, and tech brain drain.” Citi sees a long growth runway ahead for R1, saying we are in the early innings of RCM outsourcing.