Khosla Ventures has invested in R1, a leader in healthcare revenue management, to accelerate the deployment of its innovative AI solutions following the successful launch of the R37 AI lab.

Target Information

R1, based in Murray, Utah, is a prominent leader in the healthcare revenue management sector with over 20 years of expertise. The company specializes in managing and automating the complexities of healthcare revenue cycles, recently launching R37, an enterprise-grade AI lab developed in collaboration with Palantir. This cutting-edge lab is designed to enhance the financial health of healthcare providers through innovative AI applications.

With R1’s R37 AI lab, the company aims to tackle the rising administrative complexities that U.S. healthcare providers face, as they contend with mounting margin pressures. R1 has established itself as a pivotal player in transforming revenue management through agentic AI solutions, which are tailored to automate various labor-intensive processes including coding, billing, and denials management.

Industry Overview

The healthcare industry in the United States is currently experiencing significant challenges, particularly in revenue management. Administrative costs represent over 40% of hospital expenses, leading to more