On October 14, R1 RCM announced that it has entered into an agreement to acquire Phare Health for an undisclosed price.
Phare Health is a healthcare technology company building AI-native solutions for inpatient coding and clinical documentation improvement. Founded in 2023 by a group of healthcare and AI leaders, Phare Health seeks to make healthcare reimbursement fair, transparent and effortless. The company is funded by General Catalyst.
Founded in 2003, R1 RCM is an American revenue cycle management (RCM) company servicing hospitals, health systems and physician groups across the United States. The company was jointly acquired by TowerBrook Capital Partners and Clayton, Dubilier & Rice in a deal completed in November 2024. As a result, R1 RCM is now a privately held company, and its stock no longer trades on the Nasdaq.
Following the close of the transaction, which is expected to occur by the end of October 2025, the Phare Health team will join R1’s R37 innovation lab. Announced earlier in 2025, R1’s R37 AI lab has agentic applications in production with select R1 clients, including in autonomous coding where accuracy rates are as high as 97% for service lines such as emergency room and physician office visits.
According to data captured in the LevinPro HC database, this transaction represents the 250th eHealth acquisition of 2025, and 46th in the RCM specialty. RCM is the most active eHealth specialty of the year, making up approximately 18% of all eHealth deals announced since January. There were 36 RCM transactions announced in 2024, and 55 announced in 2023.
