Revolutionizing Healthcare Financial Performance with AI
R1, a leader in revenue cycle management (RCM) with over two decades of expertise, has joined forces with Palantir Technologies (NASDAQ: PLTR) to launch R37, an advanced AI-driven lab focused on reshaping healthcare financial operations. This collaboration merges R1’s deep domain knowledge in payer-provider dynamics with Palantir’s cutting-edge artificial intelligence systems, delivering intelligent automation solutions that can address the most critical challenges in healthcare reimbursement at scale.
The Growing Need for AI in Healthcare Finance
With administrative costs now consuming over 40% of U.S. hospital expenses and more than $160 billion spent annually on RCM, healthcare providers are under immense economic pressure. Complex payer relationships and inefficient manual processes have made AI-native solutions an urgent necessity. R37 aims to drive comprehensive automation in revenue cycle operations, streamlining coding, billing, and denials management to enhance efficiency, accuracy, and cash flow across healthcare organizations.
Harnessing R1’s Unmatched Data Repository
As a provider of RCM services to 94 of the top 100 U.S. health systems, R1 possesses one of the largest proprietary data repositories in the industry, including:
- 180 million+ annual payer transactions
- 550 million annual patient encounters
- 20,000 proprietary payment algorithms
- 1.2 billion annual workflow actions
By integrating Palantir’s AI capabilities with R1’s existing technology and domain expertise, R37 is poised to revolutionize revenue cycle automation, driving faster, more precise, and scalable reimbursement outcomes.
Industry Leaders Speak on the Transformative Power of AI
Joe Flanagan, CEO of R1, expressed enthusiasm about the partnership:
“R1 is thrilled to partner with Palantir to bring the transformational power of agentic AI to the revenue cycle through R37. With our expertise in reimbursement and history of automation, this lab will further accelerate investments on behalf of providers and create a new revenue cycle that delivers a faster, frictionless, and more transparent financial experience for both providers and patients.”
Alex Karp, co-founder and CEO of Palantir Technologies, highlighted the potential for meaningful change:
“R1 brings unmatched ambition to an area of healthcare that desperately needs it. By embedding our engineers directly within R1’s operations, we can rapidly scale intelligent automation and drive measurable impact—ultimately enabling providers to focus on delivering better patient care.”
AI-Powered RCM Solutions Rolling Out in 2025
The R37 AI lab has been operational for several months, actively developing and testing AI-powered agentic applications that have already demonstrated transformational benefits in early batch testing. R1 expects to deploy its first wave of comprehensive ‘agentic RCM worker’ solutions to enterprise customers in the second half of 2025.
As healthcare providers navigate increasing financial pressures, AI-powered automation through R37 represents a significant leap forward in creating a more efficient, accurate, and scalable revenue cycle management system.
