R1 RCM, a provider of technology-enabled revenue cycle management services to healthcare providers, completed its acquisition of Intermedix.
The newly-combined company manages $28 billion of annual net patient revenue on its customers’ behalf and has nearly 1,000 clients in 49 states and Washington, D.C. R1 is developing plans over the coming months to integrate Intermedix’ technology into its solutions offering and to combine functions where it adds value to its customers, shareholders and employees.
“With the completion of this transaction, we continue our relentless focus on servicing our customers and delivering on their needs,” said Joseph Flanagan, president and CEO of R1. “We believe the integration of Intermedix into R1 will enable our health system and physician practice partners to more easily connect revenue cycle operations across all points of care, improving revenues and reducing costs while improving the patient and physician experience.”
According to a related 8-K filing, Bank of America served as administrative agent on a new $295 million credit agreement to support the transaction. Bank of America and Ares Capital Management served as joint lead arrangers and joint bookrunners.
The credit agreement consists of a $270 million senior secured term loan facility and a $25 million senior secured revolving credit facility. It includes a new subordinated note purchase agreement with TI IV ACHI Holdings, IHC Health Services and Ascension Health Alliance d/b/a Ascension as purchasers.
Intermedix is a provider of data analytics and cloud-based technology with a focus on revenue cycle management, practice management and emergency management solutions.
