View source for R1 RCM

{{Short description|U.S. healthcare company}}
{{COI|date=January 2018}}
{{Infobox company
| logo = R1 RCM logo.svg
| name = R1 RCM Inc.
| type = [[Privately held company|Private]]
| traded_as = {{NASDAQ was|RCM}}
| former_name = Accretive Health, Inc.<br />
| founded = {{start date and age|2003}}
| founders = {{Unbulleted list
| Mary Tolan
| Michael Cline
}}
| key_people = {{Unbulleted list
| Joe Flanagan ([[Chief Executive Officer|CEO]])
}}
| services = {{flatlist|
* pre-registration
* financial clearance
* charge capture
* coding
* billing and follow-up
* underpayments
* denials management
}}
| owners = {{ubl|[[TowerBrook Capital Partners]]|[[Clayton, Dubilier & Rice]]}}
| hq_location = [[Murray, Utah]], U.S.
| num_employees = 30,000 (2023)
| website = {{URL|www.r1rcm.com}}
}}
'''R1 RCM Inc.''' is an American 'revenue cycle management' company servicing hospitals, health systems and physician groups across the [[United States]]. In November 2024, [[TowerBrook Capital Partners]] and [[Clayton, Dubilier & Rice]] completed the purchase of R1, in a deal that valued the company at $8.9 billion.<ref>{{Cite web|url=https://ir.r1rcm.com/news/news-details/2024/TowerBrook-and-CDR-Complete-Acquisition-of-R1-RCM/default.aspx|title=TowerBrook and CD&R Complete Acquisition of R1 RCM|work=R1|access-date=2024-11-22|language=en}}</ref>
==Overview==
RCM is ''the process of managing all revenue-generation functions in a healthcare organization''. It requires an understanding of ''the revenue cycle and begins when a patient seeks the organization's medical services and ends when the organization has collected all payments from the patient and/or their insurer.''
The firm employs more than 27,200 people and generates approximately $2.1 billion in annual revenue. R1 has over 1,000 clients across the United States, including hospitals, health systems, and physician groups.
==History==
[[File:R1 Logo.png|thumb|Previous logo]]
R1 RCM was founded as Accretive Health in 2003 by Mary Tolan and Michael Cline. Tolan served as the company's president, chief executive officer, and board director until 2013. Cline served as board chairman between 2009 and 2013.<ref>{{cite web|title=Accretive Health plans board refresh|url=http://www.chicagobusiness.com/article/20150520/NEWS03/150529967/accretive-health-plans-board-refresh|work=[[Crain's Chicago Business]]|first=Kristen |last=Schorsch|date=May 20, 2015}}</ref>
In 2012, responding to a Senate inquiry, the company stated that nine thefts of patient data-bearing company laptops had occurred in 2011, and that 30 company laptops had lacked encryption.<ref>{{cite web|title=Accretive's stolen laptop contained patient names, Swanson says|url=http://www.mprnews.org/story/2012/06/19/news/swanson-accretive-health-new-allegations|work=[[MPR News]]|first=Elizabeth|last=Stawicki|date=June 19, 2012}}</ref> As a consequence, in 2013, Accretive Health entered into a 20-year settlement with the [[Federal Trade Commission]] over its data security measures.<ref>{{cite web|title=Accretive Health Reaches Accord With FTC Over Adequacy of Data Security Measures|url=http://www.bna.com/accretive-health-reaches-n17179881133/|work=[[Bloomberg BNA]]|date=January 6, 2014}}</ref><ref>{{cite web|title=Accretive Health Settles FTC Charges That It Failed to Adequately Protect Consumers' Personal Information|url=https://www.ftc.gov/news-events/press-releases/2013/12/accretive-health-settles-ftc-charges-it-failed-adequately-protect|publisher=Federal Trade Commission|work=ftc.gov|date=December 31, 2013}}</ref>
In July 2012, Accretive Health entered into a $2.5 million settlement with the [[Minnesota Attorney General]] following an investigation into the company's debt collection practices.<ref name="reuters">{{cite web|title=Accretive Health to exit Minnesota under settlement|url=https://www.reuters.com/article/us-accretivehealth-lawsuit-idUSBRE86T1L120120730|publisher=Reuters|first=Zeba|last=Siddiqui|date=July 30, 2012}}</ref> The company admitted no wrongdoing.<ref name="reuters" /> Accretive Health was barred from operating in Minnesota for two to six years under a settlement agreement announced July 30, 2012 by Minnesota Attorney General Lori Swanson.<ref>{{Cite web |last1=Kennedy |first1=Tony |last2=writers |first2=Maura Lerner Star Tribune staff |title=Accretive is banned from Minnesota |url=https://www.startribune.com/accretive-banned-from-minnesota-for-at-least-2-years-to-pay-2-5m/164313776/ |access-date=2022-08-30 |website=Star Tribune}}</ref>
After stepping down as CEO in April 2013,<ref>{{cite web|title=Accretive's Tolan stepping down as chairman|url=http://www.chicagobusiness.com/article/20131113/NEWS03/131119891/accretives-tolan-stepping-down-as-chairman|work=Crain's Chicago Business|first=Andrew L. |last=Wang|date=November 13, 2013}}</ref> Mary Tolan was succeeded in the position by the former [[Dell]] executive Stephen Schuckenbrock.<ref>{{cite web|title=Accretive replaces CEO Mary Tolan|url=http://www.chicagobusiness.com/article/20130402/NEWS03/130409945/accretive-replaces-ceo-mary-tolan|work=Crain's Chicago Business|first1=Kristen|last1=Schorsch|first2=Thomas A.|last2=Corfman|date=April 2, 2013}}</ref> In March 2014, as a result of missed financial restatements, Accretive Health was delisted from the [[New York Stock Exchange]];<ref>{{cite web|title=Accretive Health delisted from NYSE|url=https://www.chicagotribune.com/2014/03/17/accretive-health-delisted-from-nyse/|work=Chicago Tribune|first=Peter |last=Frost|date=March 17, 2014}}</ref> [[Over-the-counter (finance)|over-the-counter]] trading continued.
On July 21, 2014, Emad Rizk replaced Schuckenbrock as CEO.<ref>{{cite web|title=Accretive Health Appoints Emad Rizk, M.D., as President and CEO |url=http://accretivehealth.com/accretive-health-appoints-emad-rizk-m-d-as-president-and-ceo/ |publisher=Accretive Health |date=July 10, 2014 |url-status=dead |archive-url=https://web.archive.org/web/20150704094805/http://accretivehealth.com/accretive-health-appoints-emad-rizk-m-d-as-president-and-ceo/ |archive-date=July 4, 2015 }}</ref> In December, the company restated certain previously filed financial statements<ref>{{cite web|title=Happy New Year: Accretive Health returns to the black… for 2013|url=http://www.modernhealthcare.com/article/20141230/NEWS/312309963|work=Crain's Chicago Business|first=Beth |last=Kutscher|date=December 30, 2014}}</ref> and, in June 2015, announced that they had completed their 2014 [[SEC filings]];<ref name="bwire">{{cite web|title=Accretive Health to Release 2014 Results and Host Conference Call on June 23
|url=http://www.businesswire.com/news/home/20150616006697/en/Accretive-Health-Release-2014-Results-Host-Conference#.VYrBcmBqyM4|work=[[Business Wire]]|date=June 16, 2015}}</ref> the firm filed its 2015 Q2 [[10-Q]] with the [[U.S. Securities and Exchange Commission|SEC]] in August 2015.<ref name="bwire" />
In 2015, [[Ascension Health|Ascension]] selected Accretive Health as its exclusive hospital revenue cycle partner. As part of the transaction, Ascension and TowerBrook Capital Partners invested $200M to support growth initiatives at Accretive Health.<ref>{{cite web|title=Accretive Health, Ascension finalize 10-year partnership|url=http://www.beckershospitalreview.com/finance/accretive-health-ascension-finalize-10-year-partnership.html|work=[[Becker's Hospital CFO Report]]|first=Brooke |last=Murphy|date=Feb 16, 2016}}</ref>
In 2017, Accretive Health was renamed as R1 RCM.<ref>{{cite web|title=Accretive Health changes performance, then name to R1|url=http://www.modernhealthcare.com/article/20170105/NEWS/170109953|work=[[Modern Healthcare]]|date=January 5, 2017|author=Dave Barkholz}}</ref> In the middle of the same year, it announced a further expansion of the agreement with Ascension to include an additional $1.5B in net patient revenue handled, which included physician group revenue cycle services.<ref>{{cite web|title=R1 RCM expands, amends agreement with Ascension|url=http://www.beckershospitalreview.com/finance/r1-rcm-expands-amends-agreement-with-ascension.html|work=[[Becker's Hospital CFO Report]]|first=Kelly |last=Gooch|date=May 10, 2017}}</ref>
In August 2020, after acquiring the RevWorks line of business from Cerner Corporation,<ref>{{Cite web|url=https://ir.r1rcm.com/news/news-details/2020/R1-Completes-Acquisition-of-RevWorks/default.aspx|title=R1 Completes Acquisition of RevWorks℠|work=R1|access-date=2020-08-03|language=en}}</ref> the company was hit with a [https://krebsonsecurity.com/2020/08/medical-debt-collection-firm-r1-rcm-hit-in-ransomware-attack/ ransomware attack].<ref>{{Cite web|title=Medical Debt Collection Firm R1 RCM Hit in Ransomware Attack — Krebs on Security|date=14 August 2020 |url=https://krebsonsecurity.com/2020/08/medical-debt-collection-firm-r1-rcm-hit-in-ransomware-attack/|access-date=2020-08-15|language=en-US}}</ref>
On October 16, 2023, Jehoshaphat Research published a [https://jehoshaphatresearch.com/wp-content/uploads/2023/10/RCM-Short-Report-by-Jehoshaphat-Research-October-2023.pdf report] alleging, among other things, that RCM’s “revenues and profits are grossly overstated,” that certain reported revenue growth has been “derived from inputs based on assumptions about future collections” which will eventually “collapse,” and that the Company’s revenue is “chronically inflated.” The report also points out that RCM has “recently seen the departures of the CEO, CFO, CCO and CSO,” which “speak to the risks [that] have surfaced.”
In December 2023, R1 RCM settled a [https://www.r1stockholderslitigation.com/ stockholder's litigation lawsuit] in which it was charged that the company breached their fiduciary duties. The amount of the settlement was $45,400,000 in cash.
In March 2024, R1 RCM Inc. filed a [https://www.jdsupra.com/legalnews/r1-rcm-announces-data-breach-affecting-6443140/ notice of data breach] with the Attorney General of Massachusetts after discovering that an unauthorized party was able to access confidential information belonging to certain consumers. In this notice, R1 explains that the incident resulted in an unauthorized party being able to access consumers’ names, contact information, dates of birth, Social Security numbers, locations of services, clinical information, diagnosis information, patient account numbers and medical record numbers. Upon completing its investigation, R1 began sending out data breach notification letters to all individuals whose information was affected by the recent data security incident.
==References==
{{Reflist}}
==External links==
* {{Official website|http://www.r1rcm.com}}
[[Category:Financial services companies of the United States]]
[[Category:Companies based in Utah]]
[[Category:Financial services companies established in 2003]]
[[Category:Health care companies based in Utah]]
[[Category:Companies formerly listed on the Nasdaq]]
[[Category:2003 establishments in Illinois]]
[[Category:2010 initial public offerings]]
[[Category:2024 mergers and acquisitions]]