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.
Advisors
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.
About VisitPay
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.
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