R1 RCM Special Committee Provides Update on Evaluation of Strategic Alternatives

Rhea-AI Summary

The Special Committee of R1 RCM Inc. (NASDAQ: RCM) has set a final deadline of July 31, 2024 for interested parties to submit fully-financed bids as part of its strategic alternatives evaluation. This process was initiated in response to a Schedule 13D/A filing by New Mountain Capital on February 26, 2024. The committee, comprising independent directors, is considering all options, including maintaining R1's current public company status and strategic plan.

The company has engaged Qatalyst Partners and Barclays as financial advisors and Skadden, Arps, Slate, Meagher & Flom LLP as legal counsel. R1 RCM emphasizes that no assurances can be given regarding the outcome or timing of this review process and does not intend to make further public comments unless a specific course of action is approved.

Positive

• R1 RCM is actively exploring strategic alternatives, potentially enhancing shareholder value
• The company has set a clear deadline for bids, indicating a structured and time-bound process
• Engagement of reputable financial and legal advisors suggests a thorough evaluation process

Negative

• Uncertainty surrounding the outcome of the strategic review process may impact stock volatility
• The company's future direction remains unclear, potentially affecting investor confidence

Sets Final Bid Deadline of July 31, 2024

MURRAY, Utah, July 24, 2024 (GLOBE NEWSWIRE) -- The Special Committee of the R1 RCM Inc. (NASDAQ: RCM) (“R1” or the “Company”) Board of Directors, which comprises independent directors and was formed to evaluate strategic alternatives in response to the Schedule 13D/A filed by New Mountain Capital, L.L.C. (“New Mountain Capital”) with the Securities and Exchange Commission on February 26, 2024, today announced it has set a final deadline for interested parties to submit fully-financed bids on July 31, 2024 in connection with its review process.

No assurances can be given regarding the outcome or timing of the Special Committee’s review process. The Special Committee continues to evaluate all alternatives for R1, including continued execution of its strategic plan as a public company. R1 does not intend to make any further public comment regarding the review unless and until it has approved a course of action for which further disclosure is appropriate.

Advisors to the Special Committee include Qatalyst Partners and Barclays as financial advisors and Skadden, Arps, Slate, Meagher & Flom LLP as legal counsel.

About R1 RCM
R1 is a leading provider of technology-driven solutions that transform the patient experience and financial performance of hospitals, health systems, and medical groups. 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.

Forward Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included in this press release are forward-looking statements. Such forward-looking statements include statements regarding the review to be conducted by the Special Committee and the outcome and timing of the review process. Such forward-looking statements are based on management’s current expectations about future events as of the date hereof and involve many risks and uncertainties that could cause the Company’s actual results to differ materially from those expressed or implied in its forward-looking statements. Subsequent events and developments, including actual results or changes in the Company’s assumptions, may cause the Company’s views to change. The Company does not undertake to update its forward-looking statements except to the extent required by applicable law. Readers are cautioned not to place undue reliance on such forward-looking statements. All forward-looking statements included herein are expressly qualified in their entirety by these cautionary statements. The Company’s 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, the outcome and timing of the review process, which may be suspended or modified at any time; the possibility that the Special Committee may decide not to undertake a strategic alternative following the review process; the Company’s inability to consummate any proposed strategic alternative resulting from the review due to, among other things, market, regulatory and other factors; the potential for disruption to our business resulting from the review process; potential adverse effects on the Company’s stock price from the announcement, suspension or consummation of the review process and the results thereof; and the factors set forth under the heading “Risk Factors” in the Company’s most recent annual report on Form 10-K, and any other periodic reports that the Company may file with the U.S. Securities and Exchange Commission.

Contacts:

Investor Relations:
Evan Smith, CFA
516-743-5184
investorrelations@r1rcm.com

Media Contact:
Josh Blumenthal
media@r1rcm.com

FAQ

What is the deadline for submitting bids in R1 RCM's (RCM) strategic review process?

The final deadline for interested parties to submit fully-financed bids is July 31, 2024.

Why did R1 RCM (RCM) initiate a strategic alternatives evaluation?

The evaluation was initiated in response to a Schedule 13D/A filing by New Mountain Capital on February 26, 2024.

Who are the financial advisors for R1 RCM's (RCM) Special Committee?

The financial advisors for the Special Committee are Qatalyst Partners and Barclays.

What options is R1 RCM (RCM) considering in its strategic review?

R1 RCM is evaluating all alternatives, including continued execution of its strategic plan as a public company and potential bids from interested parties.