R1 RCM, a technology-enabled revenue cycle management services provider to healthcare organizations, entered into a definitive agreement to acquire SCI Solutions (SCI), a digital patient engagement platform, for approximately $190 million in cash.
MTS Health Partners acted as a financial advisor, Centerview Partners acted as a strategic advisor, and Honigman acted as legal advisor to R1. Ziegler acted as a financial advisor, and Fenwick & West acted as legal advisor to SCI.
The acquisition is expected to strengthen the digital front door capabilities of R1’s technology platform, allowing healthcare providers to automate ordering, scheduling, and authorization processes.
The SCI’s electronic health records-agnostic patient access and care coordination solutions support over 94,000 providers and 1,200 sites of care that include $225 billion of possible net patient income across the country.
“R1 and SCI share a common vision of improving the patient experience in healthcare and reducing the administrative burden on providers,” said Joel French, CEO of SCI Solutions. “By leveraging R1’s deep operating experience, leading revenue cycle tools and scale in the industry, SCI’s potential to meaningfully engage consumers at every point in their healthcare journey can be fully realized.”
The acquisition will close in Q2 2020. R1 intends to fund the acquisition with a combination of cash from its balance sheet and debt.
“Patient scheduling is a critical component of the revenue cycle process, and yet is too often a major pain point for referring providers and health systems,” said Joe Flanagan, President, and CEO of R1. “With SCI’s capabilities integrated into our leading revenue cycle solution, we believe that R1 offers our customers the broadest and deepest tech-enabled patient intake solution available. We look forward to welcoming the SCI team to R1.”
Other patient engagement acquisitions:
Brighton Park Capital, an investment firm, acquired a majority stake in Relatient, a patient engagement, communications platform.
Proactive MD, a provider of workplace healthcare solutions, acquired Verimoov, the employee wellness, and patient engagement company, for an undisclosed amount.