Industry’s first revenue operating system ushers in new era

Healthcare revenue cycle management is at a defining crossroads. As the complexity and dependencies of reimbursement grow, so does the need for solutions that go beyond labor-first, point-solution approaches. R1 is rising to this challenge with the launch of Phare™, the healthcare industry’s first revenue operating system powered by enterprise-grade AI.

A new era for revenue cycle operations

Traditional revenue cycle management relies far too much on manual processes and fragmented tools, leading to inefficiencies, increased costs and missed revenue opportunities. R1’s long-term investments in people and technology supporting our mission to make healthcare better for all have culminated in the Phare Operating System, a system-level AI-powered platform designed to cut through complexity and accelerate cash flow for healthcare providers.

“R1’s vision for the future of the revenue cycle is truly groundbreaking, and we are impressed and excited about the potential of Phare and its seamless integration into our existing systems to date,” said Erik Wexler, chief executive officer at Providence Health. “We look forward to our continuing partnership with R1 for many years to come as they help us improve and evaluate the patient financial experience through compassion, innovation and operational excellence.”

The launch of Phare OS comes on the heels of our acquisition and integration of Phare Health, an AI-native healthcare intelligence company whose technology and team will complement R1’s industry expertise and R37 Lab’s established AI platform. Phare OS orchestrates agentic AI across the entire revenue cycle to fundamentally change unit economics, improving throughput, reducing cost to collect and boosting yield. Designed for autonomous operations to make real-time claim adjudication a reality, Phare uses proprietary intelligence and advanced analytics to route tasks to humans in the loop only when necessary, ensuring appropriate, accurate decisions and a full audit trail.

A new opportunity for healthcare providers

Phare OS delivers a wide range of benefits via three flagship enterprise products – Access, Claim and Flow – that address the most pressing challenges faced by revenue cycle professionals today:

• Autonomous Operations and Accuracy:
  Phare automates coding, claim error detection and follow-up, reducing manual rework and denials. Autonomous coding accuracy rates are already as high as 97% for service lines like emergency room and physician office visits.
• Seamless Patient Access:
  Phare Access blends AI and patient account management tools to verify insurance, secure authorizations, and embed accurate data in the EHR at intake. This minimizes errors and maximizes collections from the very first patient interaction.
• Accelerated Payments and AR Resolution:
  Phare Claim and Phare Flow automate claim management and payer documentation requests, driving open accounts receivable down to zero and setting new benchmarks for first-pass success. Phare Claim is now achieving over 30% automation across specialties. Phare Flow’s agentic workflows can fully automate over 20% of payer documentation requests by dollar volume. By year’s end Phare Flow will deliver agentic coverage on almost 40% of denied dollars and complete more than 70% of payer calls using conversational AI.
• Scalability and Integration:
  Phare is fully integrated with major EHRs and banks, with more than 1,000 payer connections and differentiating visibility into nationwide patient encounters. This scale enables unmatched operational insight and seamless adoption for health systems of any size.
• Continuous Learning and Compliance:
  Phare adapts to policy and payer shifts in real time, continuously learning from and adjusting to outcomes to prevent recurring problems and ensure ongoing compliance.

Singing River Health System, a mission-driven provider on the Mississippi Gulf Coast, is an early adopter implementing Phare OS agentic AI solutions across their revenue organization. Operating a number of hospitals and a wide-reaching network of clinics, specialty centers and medical parks, Singing River is a longtime R1 customer committed to innovation and excellence.

“We’re excited to partner with R1 to take our operations to the next level,” said Jason McNeil, chief financial officer of Singing River Health System. “R1’s innovative agentic AI technology will help us simplify processes, strengthen performance and capture more revenue, all so we can stay focused on what matters most – improving health and saving lives right here in our community.”

Mike Dozier, chief information officer for Singing River, points out the importance of seamless integration with the EHR when adopting any new AI. It is crucial, he says, that data from AI solutions is reintegrated into operational workflows managed in the EHR to support reporting and other organizational needs.

“AI isn’t always built within the main system and so a lot of that technology is going to be outside of the electronic health records that we deal with on an everyday basis,” said Dozier. “Having that optimized data put back, having that integration of data back into operational systems is incredibly important.”

Singing River is implementing Phare OS agentic AI applications across its revenue organization, setting a new standard for enterprise-scale accounts receivable (AR) resolution and financial performance. While AI-powered point solutions seek to fix isolated problems, Phare is a holistic approach to optimizing the entire revenue cycle designed to respond autonomously to change and prevent process problems from recurring.

“Our partnership with Singing River is a testament to the mutual trust between our team and our longtime partners,” said Joe Flanagan, chief executive officer of R1. “We are excited to work closely with the Singing River team as they roll out the Phare products and see first-hand the positive impact this offering has on their financial performance, employee satisfaction and patient experience.”

Phare represents a new era in healthcare revenue cycle management, delivering transparency, simplicity and compliance for providers. As R1 and Singing River blaze the trail, revenue cycle professionals have an exciting new opportunity to embrace innovation and unlock greater long-term value for their organizations through end-to-end AI orchestration.