What You Should Know:
– R1 RCM Inc. (NASDAQ: RCM), a provider of technology-driven solutions for healthcare providers, announced a significant strategic partnership involving the acquisition of Acclara and a 10-year revenue cycle management agreement with Providence, one of the nation’s largest health systems.
– The acquisition of Acclara for $675M in cash and warrants will bolster R1’s offerings and position it as the “trusted partner of choice” in comprehensive revenue cycle management. Acclara’s technology platforms and experienced team will enhance R1’s capabilities in patient access, coding, billing, and more, ultimately improving financial performance for healthcare providers.
Strategic Partnership with Providence
As part of the deal, Providence has chosen R1 as its long-term revenue cycle management partner. This 10-year agreement marks a significant cross-sell opportunity for R1, leveraging its technology and service solutions to support an innovative healthcare system.
“This partnership demonstrates the confidence of a major health system in our solutions and our ability to support their mission. We are proud to be their trusted partner and look forward to welcoming Acclara to R1,” said Lee Rivas, CEO of R1.
Financial Highlights and Growth Potential
The combined revenue and Adjusted EBITDA are expected to exceed $625M and $185M by year five of the partnership, demonstrating strong financial potential. Additionally, R1 anticipates significant cost synergies of $30M by year three and $50M by year five.