R1 RCM reported a $3.3 million net income in 2023 after posting a net loss of $63.3 million in 2022, according to its Feb. 27 financial statement.
For the year ended Dec. 31, the revenue cycle management company posted revenue of $2.25 billion, up 24.8% from 2022.
"R1 executed on its key objectives in 2023," CEO Lee Rivas said in the news release. "We established a stronger foundation for growth, stabilized key metrics for several clients and delivered approximately $30 million in synergies from the Cloudmed integration. In addition, we strengthened our technology platform by driving innovation through generative AI and enhanced our global infrastructure to improve our performance and competitive position in the market."
For the quarter ended Dec. 31, R1 posted a net income of $1.4 million, compared to a net loss of $36.6 million over the same period last year. The company posted revenue of $575.1 million, up 7.8% year over year.
For 2024, R1 is expecting to generate between $2.63 billion and $2.68 billion in revenue, according to the statement. It is expecting an operating income of between $105 million and $135 million.
R1's financial report was released one day after it was reported that two major shareholders are mulling an attempt to take the company private. Private equity firm New Mountain Capital and TCP-ASC — an investment vehicle jointly owned by TowerBrook Capital Partners and Ascension Health Alliance — are considering a potential cash offer of $13.75 per share for R1's outstanding stock.
An R1 RCM spokesperson told Becker's in a Feb. 27 statement: "We confirm we received a letter from New Mountain Capital requesting a waiver of the standstill restrictions contained in the investor rights agreement, which attached a form of proposal to acquire all of the outstanding shares of common stock of the company. R1 is committed to doing what is best for our shareholders, customers and associates. We remain focused on providing our customers with world-class revenue cycle solutions to help providers improve their financial performance and deliver an exceptional patient experience."