Palantir Technologies ( PLTR ) Inc shares are trading higher in premarket on Friday.

Revenue cycle management (RCM) company, R1 has joined forces with Palantir Technologies ( PLTR ) Inc , known for its expertise in artificial intelligence (AI), to create an innovative AI lab named R37.

The partnership seeks to transform healthcare financial outcomes by creating advanced automation solutions.

By combining R1’s deep understanding of payer-provider relationships with Palantir’s AI technology, the lab aims to streamline healthcare reimbursement processes more efficiently.

R1 works with 94 of the top 100 U.S. health systems, giving it a strong position to drive changes in the RCM industry.

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By integrating Palantir's ( PLTR ) advanced AI technology with R1's vast data, R37 is set to deliver faster, more accurate and scalable reimbursement results for healthcare organizations.

The partnership comes at a time when administrative costs in U.S. hospitals now exceed 40% of their total expenses, amounting to over $160 billion annually.

With increasing economic pressures and complex payer relationships, the need for AI-driven solutions in healthcare reimbursement has never been greater.

R37 will focus on automating labor-intensive tasks such as coding, billing and denials management to improve efficiency, accuracy and cash flow.

In the initial phase, R37 has developed AI-powered solutions that are already yielding positive results in early-stage testing. R1 plans to roll out comprehensive ‘agentic RCM worker' solutions to enterprise customers in the second half of 2025, aiming to further optimize the revenue cycle process.

Price Action: PLTR shares traded higher by 3.08% at $82.07 in premarket at last check.

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