Capital One Serves as Joint Lead Arranger on $2.3 Billion Financing for R1 RCM

Capital One Commercial Bank, a full-service bank with middle market specialization in many industries, including over 40 healthcare sub-sectors, announced today it served as a joint lead arranger for an amended and restated credit facility for R1 RCM. The borrower is a leading provider of technology-driven revenue cycle management (RCM) solutions for the healthcare industry.

R1 RCM used the facility, which increased its borrowing capacity from $1.2 billion to $2.3 billion, to purchase Cloudmed, an industry-leading revenue intelligence platform, and to refinance that company’s existing debt. Capital One also served as joint lead arranger when R1’s facility was created in 2019 and supported successive incremental increases in 2020 and 2021.

“We believe that R1 RCM’s acquisition of Cloudmed gives R1 RCM the ability to offer a more comprehensive, end-to-end revenue cycle management solution and helps healthcare provider organizations reduce costs, increase collections, and improve the patient experience in the face of a challenging labor and reimbursement environment,” said Donald Hooker, Capital One Healthcare Technology analyst. “This combination should give R1 RCM a greater ability to scale its investments in automation and drive improved yield from payors.”

R1 has made several acquisitions since February 2018 and is the only end-to-end RCM provider with the scale to service large national hospital networks.

“Our goal is to build the most scalable, flexible and integrated platform to meet revenue cycle and consumer engagement needs in healthcare,” said R1 CFO Rachel Wilson. “Capital One’s understanding of our strategy has made this a valuable, long-term banking relationship. They have consistently demonstrated both their willingness and their capacity to support our growth.”

The $2.3 billion facility includes a $600 million revolving line of credit, a $1.2 billion term loan and a $500 million term loan B.

About Capital One

Capital One Financial Corporation (www.capitalone.com) is a financial holding company whose subsidiaries, which include Capital One, N.A. and Capital One Bank (USA), N.A., had $313.4 billion in deposits and $434.2 billion in total assets as of March 31, 2022. Headquartered in McLean, Virginia, Capital One offers a broad spectrum of financial products and services to consumers, small businesses and commercial clients through a variety of channels. Capital One, N.A. has branches located primarily in New York, Louisiana, Texas, Maryland, Virginia, New Jersey and the District of Columbia. A Fortune 500 company, Capital One trades on the New York Stock Exchange under the symbol “COF” and is included in the S&P 100 index.

Capital One Commercial Bank is a full-service bank with middle market specialization in many industries, including more than 40 healthcare sub-sectors. Capital One Healthcare provides financial services to clients across the industry, including senior housing, healthcare services, pharmaceuticals, medical devices, healthcare IT and medical offices. Capital One Healthcare finances acquisitions, refinances existing debt, supports working capital needs and funds growth initiatives. With in-depth expertise, our team of professionals creates solutions tailored to meet our client needs. Additional information can be found at capital.one/healthcare.

About R1RCM

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.

   

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