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Enhanced R1 technology solution to provide digital patient payment and billing experience across all settings of care
CHICAGO, May 04, 2021 (GLOBE NEWSWIRE) -- R1 RCM Inc. (NASDAQ: RCM), a leading provider of technology-driven solutions that transform the patient experience and financial performance of healthcare providers, today announced a definitive agreement to acquire VisitPay, the leading digital payment solution provider for approximately $300 million in cash.
VisitPay’s cloud-based platform is used by the nation’s largest and most innovative health systems to transform the payment experience and drive both improved patient satisfaction and higher collection yield. VisitPay’s best-in-class enterprise platform gives healthcare providers and patients the tools needed to make the healthcare financial experience simple and efficient. This includes consolidated digital statements across multiple visits, care settings and family members. With these added capabilities, R1 will be poised to lead the healthcare payments market in price transparency, flexible and personalized payment options, tailored communications and big data analytics.
VisitPay’s proprietary analytics, derived from a decade’s worth of curated healthcare transaction data, are designed to deliver consistent and compliant financing options that meet the unique needs of each patient and their family. VisitPay’s payment platform is purpose-built for healthcare with proven integrations across all major acute and ambulatory billing systems.
Further, VisitPay’s financial engagement technology complements R1’s intelligent patient access technology, which unifies key patient engagement touchpoints, including orders, scheduling, clearance, arrivals and now billing and payments. This comprehensive solution will enable providers to deliver a seamless patient journey with added transparency, choice and control.
“VisitPay’s offering adds to R1’s intelligent patient access platform and underscores our drive to empower providers with a comprehensive technology solution to deliver markedly higher satisfaction and better financial outcomes,” said Joe Flanagan, president and chief executive officer of R1. “We look forward to welcoming the VisitPay team to R1.”
“R1 and VisitPay share a common vision for improving the patient experience by integrating and streamlining clinical and financial touchpoints,” said Kent Ivanoff, chief executive officer of VisitPay. “By removing the friction from these interactions, our clients create a better overall experience for their patients. We are excited to become an important part of R1’s broader technology offering to secure a better set of outcomes for providers and patients nationally.”
The transaction is expected to close in the third quarter of 2021, subject to regulatory approval and other closing conditions. R1 intends to fund the transaction with a combination of cash from its balance sheet and debt. The transaction provides a tax benefit valued at approximately $40 million, equating to an effective purchase price of approximately $260 million.
Centerview Partners LLC acted as financial advisor and Winston & Strawn LLP acted as legal advisor to R1. Allen & Company LLC acted as financial advisor and Stoel Rives LLP acted as legal advisor to VisitPay.
About R1 RCM
R1 is a leading provider of technology-driven solutions that transform the patient experience and financial performance of hospitals, health systems, and medical groups. R1’s proven and scalable operating models seamlessly complement a healthcare organization’s infrastructure, quickly driving sustainable improvements to net patient revenue and cash flows while reducing operating costs and enhancing the patient experience. To learn more, visit: r1rcm.com.
Founded in 2010, VisitPay is the leader in patient financial engagement. The company’s third-generation cloud-based platform is used by the nation’s largest and most innovative health systems to deliver transparency, choice, and control to patients managing healthcare payments and transactions. Through VisitPay, patients can access a comprehensive accounting of their financial obligations, as well as critical health plan and healthcare information, via a health system-branded portal. VisitPay’s proprietary analytics tailor consistent and fully compliant financing options that meet the unique needs of patients and their families, creating a simplified billing experience that drives both higher payment rates and improved patient satisfaction scores. VisitPay’s investors include Norwest Venture Partners, Flare Capital Partners, Ascension Ventures and The Caprock Group.
Forward Looking Statements
This press release includes statements that may constitute “forward-looking statements” made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. In particular, statements about future events and relationships, plans, future growth and future performance, including statements about the proposed acquisition of VisitPay, the anticipated benefits of the proposed acquisition of VisitPay, and the expected timing of the proposed acquisition of VisitPay, are forward-looking statements. These statements are often identified by the use of words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “designed,” “may,” “plan,” “predict,” “project,” “would” and similar expressions or variations, although not all forward-looking statements contain these identifying words. We have based these forward-looking statements on our current expectations and projections about future events as of the date hereof and any forward-looking statements contained herein should not be relied upon as representing our views as of any subsequent date. Subsequent events and developments, including actual results or changes in our assumptions, may cause our views to change. While we may elect to update these forward-looking statements at some point in the future, we have no current intention of doing so except to the extent required by applicable law. Although we believe that the expectations reflected in such forward-looking statements are based on reasonable assumptions, such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Should one or more of these risks and uncertainties materialize, or should underlying assumptions, projections, or expectations prove incorrect, actual results, performance, financial condition, or events may vary materially and adversely from those anticipated, estimated, or expected. Our actual results and outcomes could differ materially from those included in these forward-looking statements as a result of various factors, including, but not limited to risks related to the satisfaction of the conditions to closing the acquisition of VisitPay in the anticipated timeframe or at all, risks that the expected benefits from the proposed acquisition of VisitPay will not be realized or will not be realized within the expected time period, the risk that the businesses will not be integrated successfully, significant transaction costs, unknown or understated liabilities, as well as the factors discussed under the heading “Risk Factors” in our annual report on Form 10-K for the year ended December 31, 2020, our quarterly reports on Form 10-Q and any other periodic reports we file with the Securities and Exchange Commission.
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