R1 RCM, a Chicago-based revenue cycle management services provider, entered into a definitive agreement to acquire Intermedix Corp. for approximately $460 million.
Here are seven things to know.
1. Intermedix serves more than 15,000 U.S. healthcare providers through its RCM, practice management and data analytics services.
2. With the transaction, R1 will acquire Intermedix's healthcare division, according to a news release. The division consists of Intermedix's physician and emergency medical services RCM, practice management and analytics businesses.
3. The transaction does not include the Intermedix emergency preparedness division. That division is slated to turn into an independent company, backed by Thomas H. Lee Partners, the release reads.
4. Overall, both R1 and Intermedix believe the transaction will help healthcare providers address today's various challenges, including "disparate information systems, processes and organizational cultures," as well as "a lack of insightful analytics for decision making." They note these challenges are particularly difficult to overcome amid increasing patient financial responsibility and other similar trends.
5. Joseph Flanagan, president and CEO of R1, said in a statement: "By integrating the Intermedix assets into our technology-enabled services, we believe our health system and physician practice partners will more easily connect revenue cycle operations across all points of care, improving the patient and physician experience while improving revenues and reducing costs."
6. Joel Portice, CEO of Intermedix, also expressed excitement, saying, "We see joining R1 as a natural evolution for us and expect that our client partners would gain a deeper breadth of services that will better connect them to the hospitals and health systems with which they work, making the revenue cycle easier to navigate for everyone from patients to providers and staff."
7. Officials expect the transaction to close in the second quarter of this year, pending regulatory approval.
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