R1 launches an AI-native audit solution to capture full reimbursements and improve coding integrity before billing.
R1 has launched Phare Audit, a new AI-native solution designed to strengthen both coding and clinical documentation integrity before a bill is even generated. Healthcare providers can now capture the full reimbursement for the care they deliver using evidence-based, auditable recommendations.
The launch follows the completion of R1’s integration of Phare Health, which specialized in AI-native autonomous inpatient coding and clinical documentation improvement (CDI). Phare Audit offers a comprehensive mid-cycle solution, building on the capabilities many healthcare organizations rely on for pre-billing.
The “pre-bill moment” is now the reimbursement moment
Many health systems are dealing with rising complexity and intense margin pressure. These challenges are complicated by using mid-revenue cycle workflows that still depend on fragmented, reactive and post-billing efforts for DRG validation, CDI and coding quality.
The most critical reimbursement decisions happen much earlier: when clinical care is translated into coded claims. If documentation gaps slip through at that stage, they don’t just create downstream denials and rework, they can reduce earned reimbursement and increase compliance risk.
What Phare Audit does differently
Phare Audit is built to deliver a higher standard of coding and documentation integrity by combining AI-native clinical intelligence with expert oversight:
- Full EHR audit: scans the entire medical record to surface coding and CDI gaps at scale
- Concurrent CDI: identifies documentation gaps early to support specificity and compliance
- Evidence tracking: creates traceable, clinically-defensible recommendations for every case
- Pre-bill correction: helps correct discrepancies before billing to reduce rework and denials
- Expert validation: escalates complex cases for human review and resolution
- Seamless workflow: fits into existing processes without disruption
Audit everything with humans in the loop
Phare Audit is powered by R1’s Revenue Operating System and leverages Phare’s AI-native clinical engine.
This “AI everywhere, experts where needed” model is built to support accuracy, compliance and full auditability while improving operational efficiency.
Building on proven DRG-V strength
Phare Audit builds on R1’s DRG validation intelligence and expands it upstream into the mid-revenue cycle. R1 was number 1 in KLAS for Underpayment Recovery Services in 2024 and 2025, providing a proven safety net with 95% coder agreement.
