From announcing a new CEO and president to completing its acquisition of Cloudmed, here are five headlines about R1 RCM from 2022.
1. R1 RCM completed its acquisition of Atlanta-based healthcare revenue recovery provider and consultant Cloudmed on June 21. R1 RCM announced in January it planned to acquire Cloudmed in an all-stock deal worth about $4.1 billion. Cloudmed works with more than 400 of the largest health systems in the U.S. and recovers more than $1.5 billion in underpaid or unidentified revenue for its clients each year.
2. Joe Flanagan, CEO of R1 RCM, said Nov. 8 that he would step down effective Jan. 1. Lee Rivas, the company's current president, will serve as its next CEO. Mr. Rivas joined the company as president in the Cloudmed acquisition. R1 RCM Chief Operating Officer John Sparby will step into the role of president. Mr. Flanagan will continue to serve as a member of R1 RCM's board and, as part of the succession process, will serve as an executive adviser to the CEO.
3. R1 RCM's third-quarter results fell short of expectations. Mr. Flanagan outlined three reasons why, with the largest impact coming in the form of lower incentive fee revenues.
4. Capital One Commercial Bank said Sept. 7 that it was the joint lead arranger for an amended and restated credit facility for R1 RCM. The facility increased R1 RCM's borrowing capacity from $1.2 billion to $2.3 billion. R1 RCM is using the increased borrowing capacity for its Cloudmed acquisition and to refinance its existing debt.
5. R1 RCM released a financial trends report June 29 that found that nearly half of revenue cycle leaders said their departments are facing a severe labor shortage. The company's chief commercial officer, Gary Long, spoke to Becker's about what R1 RCM learned from the report.