R1 RCM to expand revenue cycle reach in acquisition of Cloudmed 

Technology company R1 RCM is acquiring Cloudmed in a further expansion of its reach into the revenue-cycle-management space.

The deal, expected to close in the second quarter of 2022, builds on R1’s previous acquisitions of VisitPay ($300 million in 2021), SCI Solutions ($190 million in 2020) and Intermedix ($460 million in 2018).  

R1 has more than 900 clients nationally serving more than 27,000 providers in revenue-cycle management.

Cloudmed serves more than 400 health systems in the country in revenue intelligence, including 47 of the top 50 hospital systems, R1 said in the announcement.

The transaction values Cloudmed at approximately $4.1 billion, including $857 million of net debt. Upon closing, current R1 shareholders will own approximately 70% of the combined company on a fully diluted basis, and Cloudmed equity holders will own approximately 30%. 

Joe Flanagan, CEO of R1, will serve as CEO of the combined company, and Lee Rivas, CEO of Cloudmed, will serve as president of the combined company. 


R1 executives see the planned acquisition as a strategic move to help health systems recover lost revenue at a time when health systems face pandemic-related financial pressures, labor shortages, rising wages and other financial strain.
R1, based in Murray, Utah, provides technology to aid the patient experience and help financial performance through revenue intelligence, automation and end-to-end revenue-cycle management. Atlanta-based Cloudmed focuses on the middle revenue cycle for a combined expertise in coding, charging, and reimbursement.


Cloudmed combines cloud-based data architecture and domain expertise with intelligent automation to analyze large volumes of medical records, payment data and complex medical insurance models. 

Cloudmed partners with more than 3,100 healthcare providers in the United States. In 2021, the company recovered more than $1.5 billion of underpaid or unidentified revenue for its customers.


“This transaction accelerates our strategy to build the most scalable, flexible and integrated platform for the revenue cycle and consumer engagement in healthcare,” Flanagan said. “Our combined solutions, including enhanced automation capabilities, will further transform the patient experience and drive continued improvement in our customers’ financial results.”

Rivas stated, “Cloudmed solves a critical problem in the healthcare system by helping healthcare providers get paid for the services they deliver.” 

Twitter: @SusanJMorse
Email the writer: [email protected]

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