R1 RCM has received an investment from venture capital firm Khosla Ventures to further its push into AI-powered healthcare revenue cycle transformation.
Khosla Ventures is a leading backer of AI companies, according to a May 28 R1 RCM news release. It was the first investor in OpenAI, Block and DoorDash and was an early investor in Cognition and Sword Health.
The investment comes after R1 partnered with Palantir Technologies in March to launch R37, an advanced artificial intelligence lab dedicated to “revolutionizing healthcare financial performance.”
R37 aims to “drive comprehensive automation in revenue cycle operations, reengineering labor-intensive processes such as coding, billing, and denials management to significantly improve efficiency, accuracy and cash flow for healthcare organizations.”
R1 RCM CEO Joe Flanagan said that with Khosla Ventures’ engagement and deep experience with AI, the RCM company will continue its investment in R37 and “drive toward a future where we seamlessly combine enterprise-grade AI with our unique data, scale and subject matter expertise, to strengthen the financial health of providers while delivering better patient care.”
The investment’s dollar amount was not included in the release.
R1 RCM was acquired by private equity firms TowerBrook Capital Partners and Clayton, Dubilier & Rice in November for $9.9 billion.
