R1, a Murray-based health care revenue management platform, has announced that it has agreed to acquire Phare Health Ltd., a health care technology company building AI-native solutions for inpatient coding and clinical documentation improvement.
“The transaction marks a significant step in advancing R1’s strategy to leverage cutting-edge AI capabilities to comprehensively automate the revenue cycle and move closer to real-time adjudication of medical claims,” R1’s announcement release said.”
Phare Health was founded in 2023 in London, England, by a group of health care and AI leaders and is funded by General Catalyst, Bertelsmann Healthcare Investments and Meridian Health Ventures. It uses a transformative approach to tackle complex inpatient coding cases. Unlike traditional systems that rely on keyword extraction, the AI engine reads all unstructured and structured data points to build a holistic fingerprint of the patient’s experience with the provider.
Following the close of the transaction, which was expected to occur by the end of October, the Phare Health team will join R1’s R37 innovation lab, which it expects to further the acceleration of next-generation AI applications.
“R1 has always been at the forefront of revenue cycle innovation, and our partnership with Phare Health marks a pivotal step in unifying the full spectrum of revenue cycle management, from clinical documentation to financial intelligence,” said Joe Flanagan, CEO of R1. “Phare Health’s physician-led, AI-native approach to coding and documentation aligns with our commitment to accuracy, transparency and responsible AI.”
“Our mission has always been to make health care reimbursement efficient, transparent and fair,” said Dr. Martin Seneviratne, co-founder and co-CEO of Phare Health. “Our platform reasons over a patient’s full medical record, drawing upon guidelines and clinical knowledge to ‘translate’ between two complex languages: clinical and coding. By joining forces with R1, we can bring our mission of fair and frictionless claims to life on a much larger scale.”