Cerner Sells Revenue Cycle Management Services Business to R1 RCM
Health IT vendor Cerner Corp. is selling its RevWorks revenue cycle management services business and commercial, non-federal client relationships to Chicago-based R1 RCM Inc.
The companies said RevWorks employees will be offered positions with R1, and both companies have committed to seamless integration between the R1’s technology-enabled services platform and Cerner’s software.
As part of the transaction, Cerner will extend R1’s revenue cycle capabilities and expertise to Cerner clients and new prospects. The acquisition is expected to close in the third quarter of 2020. Terms of the deal were not disclosed.
R1 said its EHR-agnostic revenue cycle platform “seamlessly complements a healthcare organization’s infrastructure, quickly driving transformative improvements to net patient revenue and cash flows while reducing operating costs.”
The Kansas City Business Journal reported that last year that California-based Adventist Health terminated a contract to outsource revenue cycle work to Cerner, with about 1,700 employees transitioning back from Cerner to Adventist. In Kansas City, Adventist was to offer 350 Cerner RevWorks employees jobs, and Huron Consulting Group Inc. would offer jobs to 11 RevWorks leaders, the Business Journal reported
“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.”
In the first quarter of 2020, R1 reported revenue of $320.5 million, up $44.6 million and 16.2 percent compared to the same period last year.
