The following is a summary of the R1 RCM Inc. (RCM) Q2 2024 Earnings Call Transcript:
Financial Performance:
R1 RCM Inc. reported Q2 revenue of $627.9 million, up 12% year-over-year primarily due to contributions from Acclara and growth in the Modular business.
Adjusted EBITDA for Q2 was $156.1 million, slightly ahead of internal expectations despite recent disruptions.
Net operating fees increased by approximately 5% to $374.6 million year-over-year.Modular and Other revenue grew by 35% year-over-year to $231.6 million.
Business Progress:
Successfully onboarded over 1,900 associates from a large new end-to-end customer.
Integration of Acclara is progressing well with successful cross-selling opportunities noted.
After the Ascension cyberattack, R1 implemented downtime procedures and is now gradually resuming normal operations with additional resources aimed at resolving backlogs.
Expansion occurred in multiple customer relationships, adding new services such as charge capture and underpayment solutions.
Technology advancements include the development of AI-powered tools and automation capabilities.
Opportunities:
With the largest scale in the tech and services sector for health systems, R1 continues to leverage its platform for growth in AI and automation, with potential savings up to $20 billion annually in long-term for providers through enhanced processes like prior authorizations.
Risks:
Ongoing impacts from the Ascension and Change Healthcare cyberattacks are expected to persist with an estimated full-year revenue impact between $75 million to $95 million, requiring significant recovery efforts into 2025.
Despite the cited disruptions, R1 remains optimistic regarding the recovery and ongoing support for its biggest client, Ascension, in subsequent operations.
More details: R1 RCM IR
Tips: This article is generated by AI. The accuracy of the content can not be fully guaranteed. For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.
