R1 RCM is acquiring revenue cycle management company Acclara from Renton, Wash.-based Providence.
R1 entered into a definitive agreement to acquire Acclara for $675 million and warrants to purchase 12.2 million shares of R1 stock, according to a Dec. 6 R1 news release. At the closing of the deal, Acclara and Providence will enter into a 10-year agreement for the company to provide comprehensive RCM services for the health system.
Acclara supports patients and providers through streamlined billing and payment processes, improves financial performance and enhances patient experience, according to the release. R1 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, subject to regulatory approvals as well as the entry of Providence and Acclara into the 10-year RCM agreement, according to the release.