R1 has announced its acquisition of Phare Health Ltd, aiming to enhance revenue cycle management through AI-driven solutions for inpatient coding and clinical documentation improvement.

Information on the Target

R1, a prominent leader in healthcare revenue management, has announced its acquisition of Phare Health Ltd, an innovative healthcare technology company specializing in AI-driven solutions for inpatient coding and clinical documentation improvement (CDI). Founded by experts from leading institutions such as Google DeepMind, Phare Health employs a unique AI engine that processes both structured and unstructured data to enhance inpatient coding accuracy. This acquisition is a strategic move for R1, enabling the integration of Phare Health’s advanced technology with R1’s successful DRG Validation (DRG-V) solution, ultimately offering a cutting-edge AI-native clinical intelligence solution to the healthcare market.

The collaboration is poised to significantly improve the efficiency and accuracy of medical claim reimbursements by streamlining the coding process and facilitating real-time adjudication. Upon completion of the transaction, the skilled team at Phare Health will join R1’s R37 innovation lab, further enhancing R1's capabilities in delivering transformative AI applications to its clients.

Industry Overview in the Target’s Specific Country

The healthcare technology industry in the United States is evolving rapidly, driven by technological advancements and the increasing demand for efficiency in healthcare operations. With