R1 has agreed to acquire Humata Health, adding an AI-powered prior authorization platform to its Phare Operating System as the healthcare revenue management company works toward broader revenue-cycle automation.
Financial terms were not disclosed, and the transaction is expected to close by the end of the third quarter.
Humata uses agentic workflows to monitor payer policies, determine authorization requirements, assemble clinical information and manage requests through final approval.
R1 plans to integrate those capabilities into Phare Intelligence and Payer Atlas, which form the foundation of Phare OS.
The combination is intended to automate more pre-bill authorization workflows and reduce downstream claim denials.
Humata says its platform enables providers to achieve first-pass approval rates of up to 96%, while reducing write-offs by 30%, rescheduled appointments by 83% and staff touches by 45%.
After closing, Humata’s team will become part of R1’s R37 innovation lab, which focuses on agentic AI development.
R1 serves approximately 1,000 providers, including 95 of the 100 largest U.S. health systems, and processes more than 600 million payer transactions annually.
KEY QUOTES:
“Humata significantly enhances our coverage of the authorization process, advancing our strategy to have the most intelligent and integrated pre-bill architecture in the industry.”
Joe Flanagan, CEO Of R1
“By joining forces with R1 and its visionary R37 innovation lab, we can bring our prior authorization capabilities into the Phare OS platform, combining advanced AI and upstream intelligence with downstream execution.”
Jeremy Friese, M.D., Founder And CEO Of Humata Health
