R1 RCM gets $2.3B in financing

Capital One Commercial Bank said Sept. 7 that it was the joint lead arranger for an amended and restated credit facility for R1 RCM.  

The facility increased R1 RCM's borrowing capacity from $1.2 billion to $2.3 billion, according to a Capital One news release emailed to Becker's. R1 RCM is using the increased borrowing capacity for its $4.1 billion purchase of healthcare revenue recovery provider and consultant Cloudmed, which was completed in June. The revenue cycle management company is also using the facility to refinance its existing debt. 

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, according to the news release. Capital One served as a joint arranged when R1's facility was created in 2019 and supported 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," Donald Hooker, Capital One healthcare technology analyst, said in the release. "This combination should give R1 RCM a greater ability to scale its investments in automation and drive improved yield from payers."

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