R1 RCM struck a deal to acquire Humata Health, an AI-powered touchless prior authorization company.
The deal marks a significant step in advancing R1’s strategy to comprehensively automate the revenue cycle through its Phare Operating System, the company said in an Aug. 18 news release. The acquisition will expand Phare’s AI-powered capabilities while helping providers cut administrative complexity, sharpen reimbursement accuracy and strengthen financial outcomes.
Humata’s platform automates prior authorization end to end, according to the release. R1 said the technology has driven up to a 96% first-pass approval rate, a 30% reduction in write-offs, an 83% reduction in rescheduled appointments and a 45% reduction in staff touches for health systems using it. The acquisition will fold those capabilities into Phare Intelligence and Payer Atlas, tools developed through R1’s R37 innovation lab.
“Humata significantly enhances our coverage of the authorization process, advancing our strategy to have the most intelligent and integrated pre-bill architecture in the industry,” R1 CEO Joe Flanagan said in the release.
Mr. Flanagan said the deal advances R1’s goal of making real-time authorizations “a near-term reality.”
The acquisition is expected to close in the third quarter of 2026.
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