RCM

R1 RCM Inc

Healthcare


Presented:10/17/2019
Price:$9.91
Cap:$1.11B
Current Price:$14.23
Cap:$6.01B

Presented

Date10/17/2019
Price$9.91
Market Cap$1.11B
Ent Value$2.01B
P/E RatioN/A
Book Value$0.04
Div Yield0%
Shares O/S112.15M
Ave Daily Vol984,559
Short Int6.39%

Current

Price$14.23
Market Cap$6.01B
R1 RCM, Inc. engages in the provision of revenue cycle management to healthcare providers. It offers end-to-end, modular revenue cycle, and physician advisory services. The company was founded by Mary Ann Tolan and J. Michael Cline in July 2003 and is headquartered in Chicago, IL.

Publicly traded companies mentioned herein: R1 RCM Inc (RCM), Tenet Healthcare Corp (THC)

Highlights

The presenter is long shares of R1 RCM (RCM) due to the company’s significant value proposition for hospitals, increasing patient responsibility around payment, and increasing complexity around the healthcare system. All of these trends should act as tailwinds to RCM and the broader outsourced revenue cycle management industry. The presenter believes that without any new contracts, the company has a very clear path to $350MM in EBITDA, which would imply a 9.3x multiple based on a $3.3B EV (the EV listed on Bloomberg isn’t correct because it doesn’t take the convertible debt and warrants into consideration. A reading of RCM’s 10-K will disclose various warrants held by Ascension, TowerBrook, and InterMountain).

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Idea Discussion

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