R1 RCM Inc. (OTCMKTS:ACHI) Files An 8-K Entry into a Material Definitive AgreementItem 1.01
Entry into a Material Definitive Agreement.
On and effective as of June 24, 2018, R1 RCM Inc. (the “Company”) and Ascension Health entered into a Supplement (the “Supplement”) to the Amended and Restated Master Professional Services Agreement, dated February 16, 2016, by and between the Company and Ascension Health, as amended. to the Supplement, the Company will provide revenue cycle management services for physician groups that receive services from Ascension Health’s National Revenue Service Center and other groups associated with Ascension Health hospital systems (the “Medical Group RCM Services”), as contemplated by the term sheet entered into in connection with the acquisition of Intermedix Holdings, Inc. (as disclosed in the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on February 26, 2018). Each such physician group will be required to execute an addendum to the Supplement for those physician groups to receive services under the Supplement. Ascension Health has agreed that the Company may provide services to additional physician groups affiliated with or acquired by Ascension Health over time. The Supplement also provides for the re-badging of certain centrally-based revenue cycle operations employees who support Ascension Health’s physician groups.
Ascension Health will pay the Company: (i) base fees based on a specified percentage of cash collections and (ii) incentive payments equal to a specified percentage of cash collections, then adjusted based on the Company’s performance scores across a series of performance metrics associated with the physician groups’ revenue cycle operations.
The Company also has agreed to meet certain service level standards when managing certain portions of each physician group’s revenue cycle management operations; failure to meet the service level standards will typically result in the payment of a credit to Ascension Health (up to an agreed cap).
Ascension Health is an affiliate of TCP-ASC ACHI Series LLLP, a Delaware series limited liability limited partnership, which entity owns 50% of the Company's issued and outstanding 8.00% Series A Convertible Preferred Stock.
About R1 RCM Inc. (OTCMKTS:ACHI)
R1 RCM Inc., formerly Accretive Health, Inc., is a provider of revenue cycle services to healthcare providers. The Company offers revenue cycle management (RCM) service and physician advisory services (PAS). The Company operates through the business of providing end-to-end management services of revenue cycle operations for the United States-based hospitals and other medical providers segment. It also offers modular services, allowing clients to engage in specific components of its RCM service offering. Its customers are single or multi-hospital healthcare systems, including faith-based healthcare systems, community healthcare systems, academic medical centers and their affiliated ambulatory clinics, and physician practice groups. The Company’s population health solutions (PHS) services are designed to enable healthcare providers to manage the health of a defined patient population by identifying various individuals. The Company utilizes the R1 Performance Stack.