R1 Acquires Phare Health to Advance AI in Revenue Cycle
Slice of Healthcare Team
10/15/2025
Key highlights
- R1 to acquire AI-native healthcare tech firm Phare Health
- Phare's platform enables context-aware inpatient coding
- Integration boosts R1’s R37 lab capabilities in autonomous coding
- Expected to accelerate real-time adjudication of claims
- 97% accuracy already achieved in select AI coding applications
Source: Direct
Notable Quotes
“ R1 has always been at the forefront of revenue cycle innovation, and our partnership with Phare Health marks a pivotal step in unifying the full spectrum of RCM, from clinical documentation to financial intelligence. ”
Joe Flanagan, Chief Executive Officer at R1
“ Our mission has always been to make healthcare reimbursement efficient, transparent and fair... By joining forces with R1, we can bring our mission of fair and frictionless claims to life on a much larger scale. ”
Dr. Martin Seneviratne, Co-Founder and Co-CEO at Phare Health
“ Our AI-native approach to CDI and autonomous coding combined with R1’s market-leading DRG-V solution will streamline mid-cycle workflows, improve documentation quality and enhance coding precision. ”
Lee Kupferman, Co-Founder and Co-CEO at Phare Health
Why This Matters
This acquisition positions R1 to lead the industry in agentic revenue cycle management by integrating Phare Health’s AI-native CDI and autonomous coding technology into its existing innovation ecosystem. The move reflects a broader shift in healthcare revenue management toward real-time, intelligent automation—a critical evolution as health systems seek to reduce administrative burden, ensure compliance, and improve reimbursement speed and accuracy. Through this merger, R1 not only scales advanced AI capabilities but also reinforces its long-term commitment to innovation, transparency, and operational excellence in healthcare.
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