RI RCM announced yesterday that it is purchasing RevWorks, the revenue cycle management arm of Cerner. R1 is spending $30 million on the acquisition, according to published reports.
A filing with the Securities and Exchange Commission made by R1 in relation to the acquisition indicated that the amount will be paid in three installments. RevWorks generates $80 million in annual revenue.
R1 will acquire RevWorks’s business and commercial clients, but not the company’s federal customers. Employees at RevWorks will be offered positions at R1 and the technology systems of the two companies will be integrated.
“We look forward to working collaboratively with Cerner to deliver superior results for healthcare providers and the communities they serve,” said Gary Long, executive vice president and chief commercial officer of R1, in a statement. “With our interoperable technology and end-to-end platform, we are well-positioned to serve Cerner’s customers, as well as other healthcare organizations across the country.”
This is the second acquisition this year for R1, following its purchase of SCI Solutions, a provider of scheduling and patient access solutions.
Cerner’s revenue cycle business suffered last year after Adventist Health terminated its contract with the company, and 1,700 employees were transitioned back to Adventist and Huron Consulting Group.
“Cerner’s overall goal is to deliver client success and accelerate our ability to deliver scalable innovations,” said Brenna Quinn, senior vice president of revenue cycle management at Cerner, in a statement. “We’re focused on having the right strategies, powerful and proven platforms, world-class talent, and partners like R1 to meet these goals.”
The deal is expected to close in the third quarter. It will increase R1’s footprint in the acute and ambulatory markets.