TowerBrook, CD&R-backed R1 to acquire prior-authorization AI firm Humata

• The deal is expected to close by the end of the third quarter, folding Humata’s team into R1’s R37 innovation lab
• Humata’s technology cuts write-offs by 30 percent and rescheduled appointments by 83 percent, per the release
• The acquisition will feed into R1’s Phare Intelligence and Payer Atlas modules within its Phare OS platform

TowerBrook Capital Partners– and CD&R-backed R1 has agreed to acquire Humata Health, a health tech company specializing in AI-powered, touchless prior authorizations. The deal advances R1’s strategy of automating the revenue cycle through its Phare Operating System, adding AI capabilities aimed at cutting administrative friction for providers, payers and patients.

Chicago-based R1 is a healthcare revenue management company that says it partners with 1,000 providers, including 95 of the top 100 US health systems, and processes more than 600 million payer transactions annually.

Humata’s platform matches policies and connects to payers in real time, determining requirement logic, building AI-driven clinical bundles and managing requests through final approval across specialties. The company said its solution helps providers achieve up to a 96 percent first-pass approval rate while reducing write-offs by 30 percent, rescheduled appointments by 83 percent and staff touches by percent.

“Humata significantly enhances our coverage of the authorization process, advancing our strategy to have the most intelligent and integrated pre-bill architecture in the industry,” said Joe Flanagan, CEO of R1. Flanagan added that the two companies would “continue to shape the future of revenue cycle management” for patients, providers and health systems.

The transaction is expected to close by the end of the third quarter. Following completion, the Humata team will join R1’s R37 innovation lab, its agentic AI development unit, with plans to connect Humata’s technology directly to Phare OS.

Humata is backed by a syndicate of strategic healthcare investors, including Blue Venture Fund, Sandbox Clinical Venture Fund, LRVHealth, 406 Ventures and Highmark Ventures.

Lazard advised Humata on the transaction.

Editor’s note: This news brief was produced with the assistance of artificial intelligence.