R1 Completes Sale of its Emergency Medical Services Business to Sarnova Holdings, Inc.
R1 RCM (NASDAQ:RCM) announced the completion of its emergency medical services (EMS) business sale to Sarnova Holdings for approximately $140 million. This transaction highlights R1's focus on enhancing its revenue cycle management capabilities by reallocating resources towards innovative growth. R1 remains committed to delivering exceptional revenue cycle solutions to healthcare providers. The company is optimistic about the transition for its EMS team to Sarnova, which is seen as a strategic evolution for the business.
- Sale of EMS business for approximately $140 million enhances liquidity.
- Focus on innovation and growth in revenue cycle management services.
- Potential risks regarding realization of expected benefits from divestiture.
CHICAGO, Oct. 30, 2020 (GLOBE NEWSWIRE) -- R1 RCM Inc. (NASDAQ:RCM), a leading provider of technology-enabled revenue cycle management services to healthcare providers, announced it has completed the sale of its emergency medical services (EMS) business, including EMS Revenue Cycle Management and Electronic Patient Care Reporting, to Sarnova Holdings, Inc., a leading specialty distributor of healthcare products in the EMS and acute care markets and a subsidiary of Patricia Industries.
Sarnova purchased the EMS business for approximately
“We’re pleased that the sale has been completed and believe joining Sarnova is a natural evolution for the EMS business,” said Vijay Kotte, executive vice president, physician services at R1. “We remain dedicated to serving and delivering best-in-class revenue cycle solutions to the provider market and wish our colleagues all the best as they transition to Sarnova.”
About R1 RCM
R1 RCM is a leading provider of technology-enabled RCM services which transform and solve revenue cycle performance challenges across hospitals, health systems and group physician practices. R1’s proven and scalable operating models seamlessly complement a healthcare organization’s infrastructure, quickly driving sustainable improvements to net patient revenue and cash flows while reducing operating costs and enhancing the patient experience. To learn more, visit: r1rcm.com.
About Sarnova
Sarnova is the leading specialty distributor of healthcare products in the emergency medical services (EMS) and acute care markets. The company is comprised of four major business units: Bound Tree Medical, Cardio Partners, Emergency Medical Products and Tri-anim Health Services. Sarnova is a company of Patricia Industries, a part of Investor AB, which makes significant investments in best-in-class companies with strong market positions, brands and corporate cultures. For more information, visit sarnova.com.
Forward Looking Statements
This press release includes statements that may constitute “forward-looking statements” made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. In particular, statements about future events and relationships, plans, future growth and future performance, including statements about the divestiture of the EMS business and the anticipated benefits of the divestiture of the EMS business, are forward-looking statements. These statements are often identified by the use of words such as “anticipate,” “believe,” “designed,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “will,” “would” and similar expressions or variations, although not all forward-looking statements contain these identifying words. We have based these forward-looking statements on our current expectations and projections about future events as of the date hereof and any forward-looking statements contained herein should not be relied upon as representing our views as of any subsequent date. Subsequent events and developments, including actual results or changes in our assumptions, may cause our views to change. While we may elect to update these forward-looking statements at some point in the future, we have no current intention of doing so except to the extent required by applicable law. Although we believe that the expectations reflected in such forward-looking statements are based on reasonable assumptions, such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Should one or more of these risks and uncertainties materialize, or should underlying assumptions, projections, or expectations prove incorrect, actual results, performance, financial condition, or events may vary materially and adversely from those anticipated, estimated, or expected. Our actual results and outcomes could differ materially from those included in these forward-looking statements as a result of various factors, including, but not limited to risks that the expected benefits from the divestiture of the EMS business will not be realized or will not be realized within the expected time period and significant transaction costs, as well as the factors discussed under the heading “Risk Factors” in our annual report on Form 10-K for the year ended December 31, 2019, our quarterly reports on Form 10-Q and any other periodic reports we file with the Securities and Exchange Commission.
Contacts:
Investor Relations
Atif Rahim
R1 RCM Inc.
312-324-5476
investorrelations@r1rcm.com
Media Relations
Natalie Joslin
678.585.1206
media@r1rcm.com
FAQ
What is the recent development regarding R1 RCM's EMS business?
How much did R1 RCM sell its EMS business for?
What is R1 RCM's focus after selling the EMS business?
When was the sale of R1 RCM's EMS business completed?
What are the expected benefits of the EMS business sale for R1 RCM?
