R1 acquires Intermedix in $460M revenue cycle management merger
- Chicago-based R1 RCM is purchasing fellow revenue cycle management (RCM) firm Intermedix for about $460 million.
- Under the definitive agreement, R1 will acquire Intermedix’s healthcare division, comprised of its physician and emergency medical services RCM, practice management and analytics businesses.
- The deal, which is expected to close in the second quarter of this year, does not include Intermedix’s emergency preparedness division, which will become an independent company.
The acquisition expands R1’s footprint in the revenue cycle space and increases its capability to integrate revenue cycles across care settings, the company said. Intermedix currently serves more than 15,000 individual healthcare providers nationwide.
Efforts to shore up hospital finances are expected to spur RCM activity this year, with the prospect of more consolidation as vendors jockey for market power.
Higher deductible health plans are pushing more consumers to think about healthcare costs. Payments can be a painful process for both providers and patients. According to a Connance survey, seven in 10 providers report it takes more than a month to collect from patients.
The major EHR players are investing in RCM solutions. Cerner officials told investors on a recent earnings call that the revenue cycle market offers good growth opportunity, along with population health. Allscripts CEO Paul Black has also touted strong sales of such products.
“We believe the next chapter in healthcare is one of revenue cycle transformation, where an enterprise-wide approach will simplify and contribute to the way patients interact with the revenue cycle,” R1 CEO Joseph Flanagan said in a prepared statement.