R1 RCM saw a net loss of $29.5 million in the third quarter of 2022, down from net income of $17 million over the same period last year, according to its financial report released Nov. 8.
The company said its earnings for the quarter ended Sept. 30 were negatively affected by a $9.5 million increase in allowance for credit losses.
"While we made progress on our strategic priorities in the third quarter, including integrating Cloudmed, advancing our technology roadmap, and onboarding new customers, our results fell short of our expectations due to operational and customer-specific factors," CEO Joe Flanagan said. "We are actively working to address these issues and remain very optimistic about our competitive position and long-term growth trajectory."
R1 RCM saw revenues of $496 million in the third quarter, up 30.6 percent over the same period last year, according to the report.
CFO Rachel Wilson said demand for the company's services remains robust and R1 RCM is focused on successfully onboarding new customers it added earlier this year. She said Cloudmed performed strongly in the quarter and "while we saw pressure on our incentive fees, we remain confident that the factors affecting performance should return to normal in the coming quarters."