R1 RCM announced yesterday that it has sold its emergency medical service (EMS) revenue cycle management (RCM) business to Sarnova Holdings for $140 million.
Sarnova Holdings is a distributor of healthcare products in the EMS and acute care industries. It is a subsidiary of Patricia Industries.
The divestiture of R1’s EMS RCM platform comes a month after the company announced it was spending $30 million to buy the RCM business of Cerner. R1 earlier this year purchased SCI Solutions, a provider of scheduling and patient access solutions.
“We are committed to providing an unparalleled portfolio of products and services to our existing and new EMS customers, and this transaction is a significant demonstration of that commitment,” said Jeff Prestel, CEO of Sarnova, in a statement.
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.
“The sale of the EMS business aligns with our strategic vision and focus on delivering best-in-class revenue cycle management solutions that will help health systems and physician groups improve both financial performance and patient experience,” said Vijay Kotte, executive vice president, physician services at R1, in a release. “We are confident that Sarnova is the right home for the EMS business and know they have the expertise to further grow and develop industry-leading solutions for this market.”
R1 said the sale to Sarnova reflects its “commitment to maximize investments to drive innovation and growth of its leading revenue cycle management platform serving the provider end market.”