R1 (an industry leader in managing and intelligently automating healthcare revenue management with over 20 years of experience) announced an investment from Khosla Ventures. The funding follows the launch of R37, R1’s enterprise-grade AI lab developed in partnership with Palantir, which is dedicated to strengthening the financial health of providers through core agentic AI applications.
Problem being addressed: As U.S. healthcare providers continue to struggle with rising administrative complexity and margin pressure, AI-native solutions for revenue management have become mission-critical. And administrative costs account for a large percentage of hospital expenses and a large amount is spent annually on revenue cycle operations. R1’s R37 AI lab addresses this challenge head-on, delivering agentic AI-based solutions built on R1’s unmatched proprietary dataset that automate labor-intensive workflows, such as coding, billing, and denials management, with unprecedented speed and precision.
R1’s footprint — serving 94 of the top 100 U.S. health systems — positions it as a category-shaping force in healthcare financial technology. And with over 180 million annual payer transactions, 1.2 billion annual workflow actions, and 20,000 proprietary automation algorithms, R1 has built one of the richest and most actionable data environments in healthcare. The launch of R37 is a turning point in the company’s strategy to apply agentic AI across this ecosystem.
KEY QUOTES:
“AI is transforming every corner of the economy with healthcare being one of the largest sectors of impact. R1 is pioneering the use of AI in healthcare revenue management, and we are excited to partner with them as they leverage AI to simplify the healthcare experience for patients and help providers operate more efficiently.”
Vinod Khosla, founder of Khosla Ventures
“Following the milestone launch of R37 this year, having Khosla Ventures as an investor is both a validation and a catalyst for the opportunity we see ahead as we bring our proprietary, agentic AI solution to the healthcare ecosystem. Khosla Ventures’ impressive track record backing transformative AI companies speaks for itself. With their engagement and deep experience with AI, we’ll continue our investments in R37 and drive toward a future where we seamlessly combine enterprise-grade AI with our unique data, scale and subject matter expertise, to strengthen the financial health of providers while delivering better patient care.”
Joe Flanagan, CEO of R1
