Strategic foray into healthcare
Palantir Technologies (NASDAQ:PLTR) and R1 have partnered to launch R37, a cutting-edge AI lab for improving healthcare financial performance. The alliance combines R1’s deep revenue cycle management knowledge with Palantir’s cutting-edge AI technology to build intelligent automation solutions for the challenges of healthcare reimbursement. The American healthcare sector spends over $160 billion annually on revenue cycle management, of which administrative expenses account for over 40% of hospital invoices.
Data-driven innovation
The partnership leverages R1’s sizeable client roster, including 94 of the top 100 U.S. health systems, and its sizeable data storehouse, including 180 million annual payer transactions, 550 million patient interactions, 20,000 proprietary payment algorithms, and 1.2 billion annual workflow actions. The rich data environment is ideal for use in deploying Palantir’s AI platforms, enabling the development of AI-powered applications for coding, billing, and denials management.
Deep integration and future deployment
R37 is already operational with promising test results. This deal is different from typical technology licensing deals in that there is onsite operating integration, where Palantir engineers reside in R1’s operations. Full commercial deployment of full ‘agentic RCM worker’ solutions to enterprise clients will be in the second half of 2025. There will be little near-term revenue effect, but this deal is next for Palantir in its entry into niche enterprise workflows, with the target this time being healthcare administration operational inefficiencies.