Revenue cycle management provider R1 RCM, which added several new clients this year, saw its revenue increase 16 percent year over year to $1.5 billion in 2021.
After factoring in expenses, R1's net income reached $97.2 million, down 17 percent compared to 2020. R1 said the net income decrease was due to a $55.7 million gain on business disposition, and without the gain its net income would have been 58.3 percent higher than in 2020.
The revenue cycle management provider in 2021 signed several new client contracts, including new end-to-end agreements with Mednax and VillageMD.
R1 also said it signed several modular contracts with Roseville, Calif.-based AdventistHealth, New York City-based Memorial Sloan Kettering Cancer Center, Houston-based Texas Health Resources, the Department of Veterans Affairs, ChenMed, and Alliance Spine and Pain.
R1 also said negotiations with a $10 billion customer are "substantively complete" and it plans to finalize the contract in the coming weeks.
R1 also said it expects to close its pending acquisition of Cloudmed in the second quarter. R1 announced plans to acquire Cloudmed in an all-stock deal worth about $4.1 billion Jan. 10. Atlanta-based Cloudmed, a revenue intelligence solution backed by private equity firm New Mountain Capital, works with more than 400 of the largest health systems in the U.S. and recovers more than $1.5 billion of underpaid or unidentified revenue for its clients each year.
"I am very pleased with the progress our team made in 2021. We delivered financial results significantly ahead of our expectations at the start of the year, grew our customer base, and launched innovative new solutions which will better serve healthcare providers, their patients, and the communities they serve," said Joe Flanagan, president and CEO of R1. "We are optimistic about our prospects and continued strong growth in 2022, fueled by market demand, our ongoing innovation, and the pending acquisition of Cloudmed."