R1 secures investment for agentic AI in revenue cycle management

A new investment in R1 aims to deepen the use of agentic AI in revenue cycle management.

R1, a healthcare revenue cycle management solutions vendor, recently announced an investment from Khosla Ventures to support its new enterprise-grade AI lab, R37. Khosla Ventures is a venture capital firm that focuses on investing in companies with the potential to disrupt large markets, often through AI and technology. The firm notably invested early in OpenAI, DoorDash and Square (now Block). R1 did not disclose the amount or financial terms of the investment.

R1 launched R37 in March 2025 in partnership with the AI company, Palantir Technologies. The R37 AI lab combines R1's proprietary technology capabilities with Palantir's AI tools to develop intelligence automation solutions. In particular, R37 will explore using agentic AI in revenue cycle management to optimize healthcare financial operations and reimbursement in the face of administrative burden and complexity.

Agentic AI is a type of AI system capable of autonomous action and decision-making. Solutions leveraging agentic AI use advanced technologies such as reinforcement training and evolutionary algorithms to handle complex situations and make decisions, with some systems capable of adjusting behavior autonomously.

In healthcare, the use of agentic AI is still primarily experimental, although the market's momentum is strong. The global agentic AI in healthcare market is valued at $538.51 million and is expected to grow at a compound annual growth rate of 45.56% through 2030, according to Grand View Research.

With the investment from Kholsa Ventures, R1 intends to deepen the use of AI -- particularly agentic AI -- in healthcare.

"This investment serves as both a validation and a catalyst for the opportunity R1 sees ahead and signals confidence in R1’s strategy to lead the next phase of AI-driven innovation in the healthcare revenue cycle management ecosystem," an R1 spokesperson told Informa TechTarget's RevCycle Management.

The R1 spokesperson added that "Khosla’s deep AI expertise will support" its investments in R37 to bring "its proprietary, agentic AI solutions to the healthcare ecosystem."

"The AI lab is designed to automate labor-intensive workflows such as coding, billing and denials management with unprecedented speed and precision," the spokesperson explained. "By applying enterprise-grade AI to R1’s data environment, spanning over 180 million annual payer transactions and 1.2 billion annual workflow actions, R1 is focused on creating highly scalable solutions that drive efficiency and unlock value across the healthcare financial system."

Through the partnership, Khosla Ventures and R1 also aim to "simplify and improve the healthcare experience for patients."

"AI is transforming every corner of the economy with healthcare being one of the largest sectors of impact," Vinod Khosla, founder of Khosla Ventures, also said in the announcement. "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."

Jacqueline LaPointe is a graduate of Brandeis University and King's College London. She has been writing about healthcare finance and revenue cycle management since 2016.