“Dive Brief:
EHR giant Cerner has sold its underperforming revenue cycle management arm RevWorks to provider RCM player R1 for $30 million.
With the deal, Chicago-based R1 is acquiring RevWorks’ business and its commercial, non-federal client relationships, while Cerner will extend R1’s EHR-agnostic revenue cycle capabilities to its clients and new prospects. RevWorks employees will have the option to stay on with R1, according to Wednesday’s announcement…”
“Dive Insight:
The multi-billion-dollar RCM sector has few players, but is expected to grow as hospitals struggling with suboptimal collections rates and weakening margins look to outsource back-end functions. Nearly 90% of hospitals either have outsourced or plan to outsource their billing functions this year, according to a 2020 Black Book report.
R1 has remained largely unaffected by the pandemic, reporting a revenue spike of more than 16% year over year in the first quarter to $321 million and profit of $18.2 million…” Read the full article here.
Source: Cerner sells troubled revenue cycle management arm for $30M – By Rebecca Pifer, June 4, 2020. Healthcare Dive.
