R1 RCM, the revenue cycle firm backed by TowerBrook and CD&R, has agreed to acquire Humata Health, folding the startup’s AI-powered prior authorization platform into its Phare OS. The deal was announced August 18.
Humata replaces the manual slog at the front end of prior auth. Its software pulls together clinical charts, follows adjudication queues and files requests electronically, work that back offices once handled by fax and phone. Executives report a 96% first-pass approval rate and 30% fewer write-offs.
R1 CEO Joe Flanagan framed the acquisition as a step toward making real-time authorizations a near-term reality and building what he called the most intelligent, integrated pre-bill architecture in the industry.
Hospitals know this pain well. Authorizations sit near the top of denial lists, and patients end up waiting weeks for answers.
Why it matters: payers, providers and startups have all tried to fix prior auth. R1 is betting that agentic AI embedded directly in hospital revenue systems will finally move the needle.
