Intermountain to save $70M over 3 years by transitioning employees to R1 RCM

Salt Lake City-based Intermountain Healthcare announced Jan. 24 it would transfer roughly 2,300 nonclinical employees to a new employer, saving the institution roughly $70 million during the next three years.

The 2,300 individuals will become employees of R1 RCM, a revenue cycle management services provider. The transition will be effective in April.

Intermountain and R1 RCM initially partnered in 2011. Intermountain has employed R1 employees at several of its facilities for the last six years.

"Everyone recognizes the cost of healthcare in the U.S. is too high," said Intermountain Health COO Robert Allen. "We owe it to the patients and communities we serve to explore and implement options such as this to help address this issue of affordability."

Mr. Allen added the expected $70 million in savings during the next three years is "money we won't have to ask our patients for. Plus, new jobs will be coming to Utah that will help strengthen the economy."

Under the partnership, all current Intermountain employees transitioning to R1 RCM will retain a job at their current rate of pay and employees will be able to continue working at their current work site in most cases.

The 22-hospital system revealed it planned to reorganize its operations late last year, according to the Deseret News.

Editor's note: Becker's Hospital Review reached out to Intermountain Healthcare for comment and will update the article as more information becomes available.

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