TowerBrook and CD&R-backed R1 has agreed to acquire Humata Health, an AI-powered prior authorization company. The deal advances R1's strategy to automate the revenue cycle through its Phare Operating System, adding capabilities aimed at cutting administrative friction for providers, payers, and patients.

Chicago-based R1 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, achieving up to a 96 percent first-pass approval rate while reducing write-offs by 30 percent and rescheduled appointments by 83 percent.

"Humata significantly enhances our coverage of the authorization process," said Joe Flanagan, CEO of R1. The transaction is expected to close by the end of the third quarter, with Humata's team joining R1's R37 innovation lab to integrate its technology into Phare OS. Humata is backed by Blue Venture Fund, Sandbox Clinical Venture Fund, LRVHealth, 406 Ventures, and Highmark Ventures; Lazard advised on the transaction.