R1 RCM Inc.

Thank you for standing by. My name is Sydney and I will be a conference operator today. At this time, I would like to welcome everyone to the R1 RCM Q3 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, again press the star Thank you. Evan Smith, you may now begin your conference.

Good morning, everyone. Certain statements made during this call may be considered forward-looking statements pursuant to the safe harbor provisions of this Private Securities Litigation Reform Act of 1995. In particular, any statements about our future growth plans and performance, including statements about our strategic and cost-saving initiatives, our liquidity position, and our growth opportunities and our future financial performance are forward-looking statements. These statements are often identified by the use of words such as anticipate, believe, estimate, intend, design, may, plan, project, would, and similar expressions or variations. Investors are cautioned not to place undue reliance on such forward-looking statements. All forward-looking statements made on today's call involve risks and uncertainties. While we may elect to update these forward-looking statements at some point in the future, we have no current intention of doing so except to the extent required by applicable law. Our actual results and outcomes may differ materially from those included in these forward-looking statements as a result of various factors including, but not limited to, economic downturns and market conditions beyond our control, including inflation and high interest rates, the quality of global financial markets, Regulatory changes impacting us and our customers and our ability to timely and successfully achieve the anticipated benefits and potential synergies of the acquisition of CloudMed and factors discussed under the heading risk factors in our most recent annual report on Form 10-K in our quarterly reports on Form 10-Q. We will also be referencing non-GAAP metrics on this call. For a reconciliation of non-GAAP metrics to the most closely comparable GAAP metrics, please refer to our press release. Now let me turn the call over to Lee Rivas, our CEO. Lee?

Thank you, Evan. Good morning, everyone, and thank you for joining us. Our sequential and year-over-year third quarter results demonstrate the strength of R1's innovative, technology-driven operating model and our commitment to delivering value to our customers. We continue to drive performance through a focus on operational execution, synergy realization with CloudMed, and investments in intelligent automation and now generative AI across our environments and business processes. Jennifer will cover the financials in more detail, but we are pleased with the performance this quarter and progress on our strategic priorities to drive shareholder value. First, I want to share my perspective on industry dynamics. We continue to work closely with our provider partners to more effectively address two items that are critical to their success. revenue optimization, and workforce management. These are being exacerbated by changes to payer timeframes, increased coding complexity, regulatory shifts, and macroeconomic pressures. By leveraging a constant supply of structured and unstructured data from all payer and provider types across US care settings, we deliver highly integrated analytics that uncover new opportunities to drive revenue optimization and cost savings for our customers. This in turn drives value for our shareholders. And most importantly, we save our customers time and money by simplifying the enormous amount of fragmented healthcare data to eliminate their need to stitch together a complex set of disconnected solutions for multiple vendors. On the payer side, turnaround times remain mostly stable on a sequential basis. We anticipate continued improvement over the next several years as normal cycles return following COVID. Improvements continue to positively impact our AR trends. Similarly, patient volumes have continued to stabilize, implying a constructive environment for ability to collect cash on behalf of our customers. We believe our strategy continues to position us well to leverage and respond to industry dynamics. We combine best-in-class technology and services to deliver superior outcomes at every stage of the revenue cycle workflow. With more than 500 trusted partners representing over 900 billion of covered NPR, we have a growing structured and unstructured data set based on over 500 million patient encounters annually. Our operating scale and access to this real-time performance data empowers our intelligent automation and now generative AI initiatives to deliver optimized revenue yield at a lower cost more quickly. This maximizes revenue while alleviating our customer's operating expense and capital cost burden while improving patient satisfaction. While large-scale deployments are not without troubleshooting and change management, our operating model is battle tested and allows us to sign multi-year contracts with significant embedded earnings as contracts mature and we help our customers reach their goals. We believe this model will drive long-term sustainable growth by expanding our total addressable market and our pipeline through continued advancement of our modular and fully integrated solutions to meet more customers where they are on their revenue cycle management optimization journey. Our relationships with over 500 clients across the RCM workflow continuum, combined with our global captive resources, deep experience in technology development and deployment, and our access to significant data distinctly positions R1 to deliver innovation at scale. An example of how we have leveraged these vast data resources is account pre-summarization. An AI bot reviews account-specific data inputs and summarizes key account notes and AR events, improving productivity by saving our experts time on each open account receivable. We remain focused on three areas of technology investment that are critical to client success. intelligent automation, patient experience, and scaled analytics. Across all three, we use a variety of technologies, including robotic process automation, or RPA, machine learning, and gen AI to build solutions that aim to lower cost, improve yield, and enhance the patient experience. Intelligent automation removes steps from highly manual processes to increase efficiency. Embedded intelligence and broad data visibility have helped and will continue to help us build predictive AI and machine learning models to improve processes, eliminate unnecessary steps, and drive efficiency and yield. Our track record of bringing new and innovative technologies to the sector showcases our leadership and revenue management. For example, as you saw in this morning's press release, we announced the expansion of our Microsoft relationship. This collaboration will integrate Microsoft's OpenAI service into the R1 platform to bring enterprise-level generative AI into healthcare revenue cycle management. We have started to deploy generative AI solutions and tools live in production in a few targeted areas, including physician coding quality, payer follow-up, and enhancement of revenue integrity rule productivity. We believe we are ideally positioned to leverage and apply GenAI across revenue management, and we intend to lead this evolution. Our first large language model or LLM application was recently introduced and significantly increases the productivity of physician coding quality assurance, integrating tools for Microsoft's Azure AI Studio. The application evaluates complex medical records to predict physician evaluation and management codes and improve coding quality across patient charts. Historically, our team manually coded approximately 50,000 physician charts per week and sampled around 5% of those to assess quality. Now, we're able to automatically compare all 50,000 manually coded charts to the automated code. R1 recently finalized the automation of quality assurance for 100% of its coding volume in this area, resulting in improved coding quality and more satisfied physicians. We conceived and delivered the application in under four months. We have developed a product roadmap with a catalog of generative AI use cases planned for testing and deployment through the remainder of the year and into 2024. Along with our existing platform, data assets and access, and technical agility, we expect our investments in GenAI will further extend our competitive advantage. Finally, I would like to discuss our commercial progress with a few examples of cross-selling and up-selling across our business. Today, R1 scale, which was enhanced significantly by the acquisition of CloudMed, supports a broader range of clients by size and at every stage of the revenue cycle with best-in-class solutions to deliver improved performance. R1 has the flexibility to meet immediate and long-term client needs with the capabilities and global scale to expand the partnership over time. I am pleased with our progress in building a deep pipeline of active opportunities including a number at the final stages of negotiations. While we are confident in signing $4 billion or more of NPR in the coming months, our priority is structuring a long-term collaborative partnership with terms that create optimal value for R1 and our partners. To drive performance and value for both our customers and shareholders, we regularly review our partnerships to ensure alignment on goals and objectives. As such, we have been in active discussions with one of our physician clients to determine a mutually agreed upon path forward. In the interim, they have sent us a notice of their intent to terminate the contract. This client is not material to our financial performance. On the modular side, we've continued to see accelerated bookings because of macroeconomic pressures positioning us well for continued growth. Now, let me give you an example of how we can meet the customer anywhere on their journey by leveraging our suite of modular solutions. One example of cross-sell of an R1 solution is a long-standing CloudMed customer who had increased their uses to several CloudMed solutions over the past three years. The customer was exploring additional patient payment solutions, which presented an opportunity to showcase our EntryPay solution, a fully integrated and intuitive patient payment experience via a personalized self-service platform. They selected R1 based on our strong performance over the past several years and the capabilities of the entry-based solution. We have also had success adding CloudMed solutions to the end-to-end customer base to provide advanced reporting and analytics for improved performance. As our existing and potential customers continue to experience financial and macroeconomic pressures, we believe our modular and end-to-end offerings, leveraging technology and services on a global scale, will create new opportunities to drive pipeline growth and increase bookings. Our diversified portfolio ensures we can solve the most complex problems our customers face, either on an individual or comprehensive basis. In closing, we are confident our innovative solutions will continue to exceed our customers' increasingly complex needs, driving growth and shareholder value. Our team remains focused on delivering on our priorities and finishing 2023 with a strong fourth quarter. We are committed to our mission to make healthcare better for all. Now I'd like to turn the call over to Jennifer to review the financials.