R1, which develops revenue cycle management technology, announced Wednesday that it will acquire RevWorks, Cerner’s RCM outsourcing arm.
WHY IT MATTERS
The transaction, reportedly valued at $30 million, includes the services aimed at Cerner’s business and commercial clients, but not its federal customers.
R1’s revenue cycle platform is EHR-agnostic and aims to help drive lasting improvements to net patient revenue and cash flows and reduce operating costs.
The company says Cerner RevWorks associates will be offered positions with R1, and that the two firms’ tech and services will be integrated.
As part of the deal, expected to close in Q3 2020, Cerner will offer R1’s rev cycle tools to its own clients and prospects, company officials say.
“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. “We’re focused on having the right strategies, powerful and proven platforms, world-class talent, and partners like R1 to meet these goals.”
THE LARGER TREND
Cerner has struggled somewhat with its revenue cycle outsourcing, with a 2019 KLAS report noting that 70% of Cerner RCO clients “have buyers remorse.”
Still, outsourcing RCM to experienced vendors has its benefits, and many providers take advantage of handing off those responsibilities as they grapple with new financial imperatives and changing reimbursement models.
ON THE RECORD
“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. “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.”
In a separate statement sent to Healthcare IT News, Cerner noted that it is “committed to growth and transformation that drives simplicity, scale and more cost-effective solutions for health care. Our new relationship with R1 will bring our commercial, non-federal clients a total solution that pairs Cerner’s advanced technology with R1’s world-class revenue services, ultimately optimizing financial performance for health systems.”
Twitter: @MikeMiliardHITN
Email the writer: [email protected]
Healthcare IT News is a publication of HIMSS Media
Source: Read Full Article