TowerBrook Capital Partners and Clayton, Dubilier & Rice are acquiring R1 RCM in a deal valued at $8.9 billion that is expected to close by the end of the year, subject to stockholder and regulatory approvals. The firms made the decision to reappoint Mr. Flanagan after the closure of the deal, according to an Aug. 8 regulatory filing.
The filing includes an email to employees from current R1 RCM CEO Lee Rivas, who said he is “supportive of this move as R1 approaches its next chapter as a private company.”
Mr. Rivas became CEO in January 2023 when Mr. Flanagan stepped down from the position at the end of 2022. Mr. Rivas joined R1 RCM in June 2022 following the company’s acquisition of revenue recovery provider and consultant Cloudmed. Mr. Rivas was Cloudmed’s CEO. Mr. Flanagan has remained involved in R1 as a member of its board.
Mr. Flanagan will establish a transition office for TowerBrook Capital Partners and Clayton, Dubilier & Rice between now and closure to help plan for operating as a private company, according to the email. He will not have a decision-making role in R1 until after closure.
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