R1 RCM announced that it is acquiring revenue cycle management (RCM) company Acclara from Renton, Washington-based health system Providence Health & Services.
R1 RCM is buying Acclara for $675 million and warrants to purchase 12.2 million shares of R1 stock, according to a December 6, 2023 R1 RCM news release.
Acclara supports patients and providers through streamlined billing and payment processes, improves financial performance and enhances patient experience.
Founded in 2003, R1 RCM is a RCM company that services hospitals, health systems and physician groups across the United States. R1 RCM saw revenues of $1.8 billion in 2022 but a net loss of $57.6 million, according to its financial report released on February 16, 2023. Adjusted EBITDA during FY 2022 was $425.5 million.
At the closing of the deal, Acclara and Providence will enter into a 10-year agreement for Acclara to provide comprehensive RCM services for the health system. R1 RCM said the partnership lays the foundation for the company to “continue to automate revenue management and to extend its scale and diversification to build long-term value for providers, patients and shareholders.” The deal is expected to close in early 2024.
According to data captured in the LevinPro HC database, this represents the 260th eHealth transaction of 2023 and the 55th in the RCM specialty. This also marks R1 RCM’s first acquisition since its $4.1 billion acquisition of Cloudmed was announced in January 2022.
