R1 Launches Phare Audit, the AI-Native Solution to Capture Full Reimbursement, Reduce Revenue Leakage and Improve Quality

Phare Audit Uses Proprietary Agentic AI to Maximize Earned Reimbursement, Enhancing R1’s Industry-Leading DRG-V with Full Auditability

CHICAGO, Jan. 08, 2026 (GLOBE NEWSWIRE) -- R1 (“R1” or the “Company”), the leader in healthcare revenue management, today announced the launch of Phare Audit, the most comprehensive AI-native solution for both coding and clinical documentation integrity. It is designed to transform mid-revenue cycle performance by improving accuracy and quality before a bill is generated so that providers capture the full reimbursement for the care delivered – with defensible, evidence-based recommendations and complete auditability. The solution builds on R1’s industry-leading DRG Validation (“DRG-V”) intelligence by combining the most advanced AI-native clinical engine with trusted R1 experts to ensure reimbursement reflects the entire medical record and aligns with the true complexity of care. The launch follows the completion of R1’s acquisition of Phare Health, which specializes in building AI-native solutions for autonomous inpatient coding and clinical documentation improvement (“CDI”).

Developed by R1, Phare Audit is the answer to rising complexity and intense margin pressure in the mid-revenue cycle. Today, health systems often rely on fragmented, reactive post-bill processes for DRG validation, CDI and coding quality. Yet, the most important reimbursement decision happens before a bill is ever created – when clinical care is translated into coded claims. Powered by R1’s Revenue Operating System and leveraging Phare Claim’s AI-native intelligence, Phare Audit reads the full medical record and audits 100% of cases to identify and fix CDI and coding gaps before they impact billing, helping to ensure claims are coded as cleanly as possible and downstream rework and risk are reduced. In addition, Phare Audit is backed by R1’s trusted DRG-V offering, which was ranked #1 by KLAS for Underpayment Recovery Services in 2024, providing a proven safety net with 95% coder agreement.

Phare Audit extends the capabilities of R1’s industry-leading DRG-V solution, trusted by 165 active clients and delivering more than $900 million in annual client value. By bringing that same clinical and coding intelligence earlier in the cycle, and pairing it with the most advanced AI-native clinical engine, the solution delivers a new level of coding and documentation integrity: full-record review, evidence-based transparency, and expert oversight in one system. The solution embeds traceable, compliance-first recommendations in the record, so that reimbursement is accurate and optimized. With Phare Audit, healthcare providers can expect:

• Full Record Review. AI scans the entire medical record to surface coding and CDI opportunities at scale.
• Evidence Tracking. Builds clear, traceable, clinically supported recommendations.
• Pre-bill Correction. Corrects discrepancies before billing to reduce rework and denials.
• Optimized Quality. Optimizes quality scores with deep review of clinical text and targeted CDI quality reviews.
• Expert Validation. R1 auditors provide human oversight by resolving complex cases and validating AI findings.
• Customized Models. A forward deployed engineer (FDE) will partner with clients to train custom models tailored to their health systems, optimized to align with local policies and guidelines.

“The launch of Phare Audit marks an exciting step in the integration of the technology developed at Phare Health into R1’s Revenue Operating System,” said Dr. Martin Seneviratne, Product Leader at R1 and former Co-Founder of Phare Health. “By combining advanced agentic technology with hands-on expertise, Phare Audit will transform the mid-revenue cycle and optimize both patient reimbursement and quality scores. Our goal with the Phare Operating System is to drive efficiency and transparency in the revenue cycle space and move closer to real-time claim adjudication, while reducing costly denials and giving organizations confidence in every claim. Phare Audit is our answer to the need for a unified view across coding and CDI and puts us one step closer to a future of streamlined, automated claim processing that ensures compliance, accuracy, transparency and efficiency at every step.”

About R1

R1 is the leader in healthcare revenue management, helping providers achieve new levels of performance through smart orchestration. A pioneer in the industry, R1 created the first Healthcare Revenue Operating System: a modular, intelligent platform that integrates automation, AI, and human expertise to strengthen the entire revenue cycle. With more than 20 years of experience, R1 partners with 1,000 providers, including 95 of the top 100 U.S. health systems, and handles over 270 million payer transactions annually. This scale provides unmatched operational insight to help healthcare organizations unlock greater long-term value. To learn more, visit: https://www.r1rcm.com.

Contacts

R1
Will Reilly
VP, Marketing
media@r1rcm.com

Eliza Rothstein / Madeline Jones
Joele Frank, Wilkinson Brimmer Katcher
R1RCM-JF@joelefrank.com

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.