R1 RCM has entered an agreement to acquire Phare Health, a healthcare technology company developing AI tools for inpatient coding and clinical documentation improvement.
The deal is expected to close by the end of October, according to an Oct. 14 R1 news release. Once finalized, Phare Health will join R1’s R37 AI lab. R1 announced in March that it was partnering with Palantir Technologies to launch the R37 lab, which is dedicated to “revolutionizing healthcare financial performance.”
The R37 lab has agentic AI applications in production with select R1 clients, including in autonomous coding where accuracy rates are already as high as 97% for service lines such as emergency room and physician office visits, according to the release.
“Phare Health’s physician-led, AI-native approach to coding and documentation aligns with our commitment to accuracy, transparency and responsible AI,” R1 CEO Joe Flanagan said in the release. “Together, and through our R37 innovation lab, we are well equipped to bring health systems dependable, compliant solutions that ultimately reduce administrative friction and risk.”
