R1 RCM is finally getting taken off the public markets, ending a months-long saga between private equity firms that were trying to take control of the large health care billing and collections company.
Private equity firms TowerBrook Capital Partners and Clayton, Dubilier & Rice are teaming up to buy R1, the companies said Thursday. TowerBrook, in a partnership with the Catholic hospital system Ascension, already owns 36% of R1 — which made TowerBrook and Ascension the company’s largest combined shareholder. TowerBrook and CD&R are buying the rest of the company for $14.30 per share in cash, valuing R1 at $8.9 billion.
The bidding war for R1 highlights private equity’s appetite for “revenue cycle management” companies, which run the medical billing, collections, patient registration, and other administrative services for hospitals and physician groups.
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