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Sutter inks 10-year contract with R1 RCM

Dive Transient:

  • Sutter Well being has entered right into a 10-year settlement with R1 RCM to solely handle the well being system’s income cycle administration companies, the businesses introduced final week.
  • Sutter may save about $400 million over the following 10 years because the partnership goals to handle labor prices and rising inflation, they mentioned.
  • About 1,150 Sutter RCM workers will likely be provided “comparable positions” at R1, and the roles are anticipated to remain in California, in line with a press launch.

Dive Perception:

SVB Leerink analysts mentioned in a report that the contract was value $10 billion for R1 and notched it as a win for the corporate, which reported income of almost $386 million within the first quarter of this yr. The analysts famous that Sutter runs on Epic EHR techniques, whereas earlier offers have largely concerned well being techniques utilizing Cerner.

“We consider this might assist R1’s push upmarket to the extent that it opens the door to additional Epic offers, which the most important well being techniques are likely to run on,” they mentioned. That might embody offers with the Cleveland Clinic and Advocate Aurora Well being.

R1 at present manages income cycles for Ascension and Intermountain Healthcare, amongst others.

The corporate has additionally been steadily increasing its enterprise over the previous two years. The brand new partnership comes on the heels of R1’s June $4.1 billion acquisition of Cloudmed, which offers income integrity and restoration companies for suppliers.

That was the most recent in a spate of buys, together with affected person monetary engagement firm VisitPat in Could 2021 for $300 million. In 2020, R1 purchased Cerner’s income cycle enterprise RevWorks for $30 million.

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