R1 Announces Investment from Khosla Ventures as it Accelerates AI-Driven Healthcare Transformation

Investment Follows Recent R37 Launch

/EIN News/ -- MURRAY, Utah, May 28, 2025 (GLOBE NEWSWIRE) -- R1, an industry leader in managing and intelligently automating healthcare revenue management with over 20 years of experience, today announced an investment from Khosla Ventures, a leading backer of transformative AI companies. The investment follows the successful launch of R37, R1’s enterprise-grade AI lab developed in partnership with Palantir, which is dedicated to strengthening the financial health of providers through core agentic AI applications.

As U.S. healthcare providers continue to grapple with rising administrative complexity and margin pressure, AI-native solutions for revenue management have become mission-critical. Administrative costs account for over 40% of hospital expenses, and more than $160 billion is spent annually on revenue cycle operations alone. R1’s R37 AI lab addresses this challenge head-on, delivering agentic AI solutions built on R1’s unmatched proprietary data set that automate labor-intensive workflows such as coding, billing, and denials management with unprecedented speed and precision.

Khosla Ventures invests early into companies that are bold and impactful. It was the first investor in OpenAI, Block, and DoorDash, and early into a range of AI companies from Cognition to Sword Health.

“AI is transforming every corner of the economy with healthcare being one of the largest sectors of impact,” said Vinod Khosla, founder of Khosla Ventures. “R1 is pioneering the use of AI in healthcare revenue management, and we are excited to partner with them as they leverage AI to simplify the healthcare experience for patients and help providers operate more efficiently.”

R1’s unmatched footprint — serving 94 of the top 100 U.S. health systems — positions it as a category-shaping force in healthcare financial technology. With over 180 million annual payer transactions, 1.2 billion annual workflow actions, and 20,000 proprietary automation algorithms, R1 has built one of the richest and most actionable data environments in healthcare. The launch of R37 marked a turning point in the company’s strategy to apply agentic AI across this ecosystem.

“Following the milestone launch of R37 this year, having Khosla Ventures as an investor is both a validation and a catalyst for the opportunity we see ahead as we bring our proprietary, agentic AI solution to the healthcare ecosystem,” said Joe Flanagan, CEO of R1. “Khosla Ventures’ impressive track record backing transformative AI companies speaks for itself. With their engagement and deep experience with AI, we’ll continue our investments in R37 and drive toward a future where we seamlessly combine enterprise-grade AI with our unique data, scale and subject matter expertise, to strengthen the financial health of providers while delivering better patient care.”

About R1
R1 is a leading provider of automation solutions that transform the financial performance and patient experience for health systems, hospitals, and physician groups. R1’s proven and scalable operating models seamlessly complement a healthcare organization’s infrastructure, quickly driving sustainable improvements to net patient revenue and cash flows while driving revenue yield, reducing operating costs, and enhancing the patient experience. To learn more, visit: https://www.r1rcm.com.

About Khosla Ventures
Khosla Ventures is a venture capital firm focused on investments in artificial intelligence, financial services, healthcare, consumer, enterprise, and sustainability sectors. It is known for making early capital investments in startups such as OpenAI, Instacart, Affirm, DoorDash, and Block. https://www.khoslaventures.com/

Contacts

R1:
Jonathan Keehner / Madeline Jones
Joele Frank, Wilkinson Brimmer Katcher
R1RCM-JF@joelefrank.com

Will Reilly
VP, Marketing
media@r1rcm.com

Khosla Ventures:
media@khoslaventures.com