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R1 RCM Inc. (OTCMKTS:ACHI) Files An 8-K Entry into a Material Definitive Agreement

R1 RCM Inc. (OTCMKTS:ACHI) Files An 8-K Entry into a Material Definitive AgreementItem 1.01 Entry into a Material Definitive Agreement.

On May 4, 2017, R1 RCM Inc. (“R1” or the “Company”) and Ascension Health (“Ascension”) entered into Amendment No. 1 (the “Amendment”) to the Amended and Restated Master Professional Services Agreement, dated February 16, 2016, by and between R1 and Ascension (the “MPSA”).
The Amendment is effective as of April 28, 2017 and sets forth that (i) the Company will provide certain revenue cycle management services for physician groups associated with Ascension’s hospital systems in Wisconsin (the “Medical Group RCM Services”), (ii) the Company will provide acute care revenue cycle management services for Ascension’s Wheaton Franciscan Healthcare system (“Wheaton”), which system was not previously included within the group of acute care hospitals to be served by R1 under the MPSA and (iii) the planned commencement date for the Company’s provision of services to Ascension’s Ministry Healthcare system in Wisconsin (“Ministry”) was changed from July 1, 2018 to October 1, 2017.
The Amendment further provides that the Company will credit Ascension quarterly for 50% of cost savings realized by the Company in managing (i) the acute care revenue cycle operations of Wheaton and Ministry through June 30, 2019 and (ii) the Medical Group RCM Services through the duration of the Company’s provision of such services. Additionally, the Amendment provides that Ascension may terminate the Medical Group RCM Services for convenience at the second anniversary of the commencement of such services by notifying the Company of such its election to terminate within sixty days prior to such second anniversary. The Amendment will be filed with the Company’s next Quarterly Report on Form 10-Q.
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. R1 RCM Inc. (OTCMKTS:ACHI) Recent Trading Information
R1 RCM Inc. (OTCMKTS:ACHI) closed its last trading session down -0.12 at 3.62 with 175,174 shares trading hands.