Welcome!

News Feed Item

Accretive Health Provides Restatement Update

Accretive Health, Inc. (NYSE:AH) today announced that following discussions with its independent auditors, the Company has determined that although its work associated with its financial restatement is substantially complete, it has taken longer than anticipated and more time is needed. As a result, the Company will not be in a position to complete its financial restatement by the previously disclosed March 19, 2014 New York Stock Exchange (NYSE) deadline to file its Annual Report on Form 10-K with the Securities and Exchange Commission (SEC).

Accretive Health has made substantial progress on its Form 10-K for the year ended December 31, 2013, including the financial statements for the years ended December 31, 2013 and 2012 and the restated financial statements for the year ended December 31, 2011, on which audits are underway. The Company is currently in the process of working with its auditors to complete the audits as soon as possible.

As a result, the Company expects to receive a delisting determination letter from the NYSE indicating that the Company’s common stock will be suspended from trading on the NYSE effective prior to the opening of the market on March 17, 2014. Immediately following the suspension of NYSE listing, the Company expects that trading will continue uninterrupted through the facilities of the OTC Markets Group Inc. The Company has provided information regarding the market change in the FAQ section of its investor relations website.

The Company continues to expect the restatement will have no net impact on total cash flows in any reporting period, or on the Company’s cash balance. The Company’s cash and cash equivalents as of December 31, 2013 were approximately $228 million. The Company had no debt outstanding as of December 31, 2013.

“While we are disappointed with the delay, we continue our relentless mission to deliver outstanding service to our clients. We have used this time to strengthen our value proposition and enhance our client focus, including increasing our investment in IT and reinforcing our front-line teams. We are moving our entire organization forward to help provider clients optimize their financial performance, in the face of ongoing industry change, to ensure the sustainability of their missions,” said Steve Schuckenbrock, president and chief executive officer of Accretive Health. “I have every confidence in our ability to complete the necessary work to file our restatement and regain our stock exchange listing. I would like to acknowledge all Accretive Health employees, our auditors, and advisors for their extensive work and contributions to the restatement process, and thank our clients and our shareholders for their continued patience as we work to complete this process.”

As previously disclosed, the Company’s Audit Committee on March 4, 2013 determined that the Company will restate its financial statements to correct errors related to the timing of revenue recognition under a significant number of its revenue cycle management agreements. The Company subsequently determined that a significant portion of the base fee revenues from its revenue cycle management agreements should have been presented in the Company’s previously reported financial statements net of associated operating costs rather than based on the gross amount of base fees billed to clients. In the Company’s Form 12b-25 filed with the SEC on March 4, 2014, it disclosed it has also reviewed its capitalization of internally developed software and has determined that a portion should have been expensed as incurred rather than initially capitalized and subsequently amortized to expense in later periods. Accordingly, the Company will revise its financial statements to correct these errors.

Operational Update

Accretive Health has taken substantial steps over the past year to position the Company to capture additional growth opportunities within the dynamic U.S. healthcare marketplace. In January 2014, the Company implemented a strategic restructuring plan to reduce costs, improve resource efficiency and enhance organizational effectiveness. The Company believes this plan will further strengthen its ability to help provider clients optimize their financial performance to ensure the sustainability of their patient care missions.

The Company has initiated a number of strategic initiatives based on direct feedback from clients to more effectively allocate the necessary resources to enhance client service and drive growth and innovation. To date, the Company has made progress across the following areas:

  • Strengthening front-line teams – The Company is redeploying corporate resources to its front-line teams at client sites, including the relocation of resources closer to clients, to enhance execution and client engagement. As part of this initiative, the Company has also launched a certification process for on-site employees to ensure that they are providing best-in-class support and services.
  • Increasing investment in IT – As part of its initiative to enhance client service, the Company is investing over one-third of its 2014 IT budget in technologies to enable it to more seamlessly integrate with clients’ existing technologies. The Company plans to continue to deploy resources to bolster its already robust IT infrastructure to drive additional value for clients. In February 2014, the Company hired Patrick Funck as Chief Information Officer, an industry veteran with 25 years of experience.
  • Simplifying the measurement model – The Company has made progress in simplifying its model to measure results for clients, and will provide a further update upon the completion of its restatement.
  • Improving the consistency of results for clients – The Company has developed a more rigorous and systematic approach to gather and apply the insights it gains from daily operations across the entire client base. The Company intends to leverage this scale and depth to drive innovation and standardize processes to create a best-in-class operating system.
  • Boosting sales and marketing efforts – New business development remains a priority at Accretive Health, and the Company has continued to expand its sales force with the addition of new sales personnel in recent months. The Company is also integrating its marketing effort and has launched a new client website. In addition, it has integrated its AccretivePAS clinical sales capabilities with its revenue cycle sales organization to offer clients multiple paths to engage with Accretive Health’s core business.

About Accretive Health

At Accretive Health, our mission is to partner with healthcare communities to serve as a catalyst for a healthier future for all. For more information, visit www.accretivehealth.com.

Safe Harbor

This press release contains forward-looking statements, including the Company’s statements regarding its ability to complete its restatement and make required SEC filings, the anticipated consequences of the restatement of the Company’s financial statements described above, and statements regarding the Company’s strategic initiatives. All forward-looking statements contained in this press release involve risks and uncertainties. Our actual results and outcomes could differ materially from those anticipated in these forward-looking statements as a result of various factors, including the possibility that any restatement that may be required could have unanticipated consequences and the factors set forth in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2012, filed with the SEC on November 8, 2012, under the heading “Risk Factors”. The words “strive,” “objective,” “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “would,” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. The Company has based these forward-looking statements on its current expectations and projections about future events. Although the Company believes that the expectations underlying any of its forward-looking statements are reasonable, these expectations may prove to be incorrect and all of these statements are subject to risks and uncertainties. Should one or more of these risks and uncertainties materialize, or should underlying assumptions, projections, or expectations prove incorrect, actual results, performance, financial condition, or events may vary materially and adversely from those anticipated, estimated, or expected.

All forward-looking statements included in this press release are expressly qualified in their entirety by these cautionary statements. The Company cautions readers not to place undue reliance on any forward-looking statement that speaks only as of the date made and to recognize that forward-looking statements are predictions of future results, which may not occur as anticipated. Actual results could differ materially from those anticipated in the forward-looking statements and from historical results, due to the uncertainties and factors described above, as well as others that the Company may consider immaterial or does not anticipate at this time. Although the Company believes that the expectations reflected in its forward-looking statements are reasonable, the Company does not know whether its expectations may prove correct. The Company’s expectations reflected in its forward-looking statements can be affected by inaccurate assumptions it might make or by known or unknown uncertainties and factors, including those described above. The risks and uncertainties described above are not exclusive, and further information concerning the Company and its business, including factors that potentially could materially affect its financial results or condition or relationships with customers and potential customers, may emerge from time to time. The Company assumes no, and it specifically disclaims any, obligation to update, amend, or clarify forward-looking statements to reflect actual results or changes in factors or assumptions affecting such forward-looking statements. The Company advises investors, however, to consult any further disclosures it makes on related subjects in our periodic reports that it files with or furnishes to the SEC.

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
One of the bewildering things about DevOps is integrating the massive toolchain including the dozens of new tools that seem to crop up every year. Part of DevOps is Continuous Delivery and having a complex toolchain can add additional integration and setup to your developer environment. In his session at @DevOpsSummit at 18th Cloud Expo, Miko Matsumura, Chief Marketing Officer of Gradle Inc., will discuss which tools to use in a developer stack, how to provision the toolchain to minimize onboa...
There will be new vendors providing applications, middleware, and connected devices to support the thriving IoT ecosystem. This essentially means that electronic device manufacturers will also be in the software business. Many will be new to building embedded software or robust software. This creates an increased importance on software quality, particularly within the Industrial Internet of Things where business-critical applications are becoming dependent on products controlled by software. Qua...
With the proliferation of both SQL and NoSQL databases, organizations can now target specific fit-for-purpose database tools for their different application needs regarding scalability, ease of use, ACID support, etc. Platform as a Service offerings make this even easier now, enabling developers to roll out their own database infrastructure in minutes with minimal management overhead. However, this same amount of flexibility also comes with the challenges of picking the right tool, on the right ...
Recognizing the need to identify and validate information security professionals’ competency in securing cloud services, the two leading membership organizations focused on cloud and information security, the Cloud Security Alliance (CSA) and (ISC)^2, joined together to develop an international cloud security credential that reflects the most current and comprehensive best practices for securing and optimizing cloud computing environments.
SYS-CON Events announced today that (ISC)²® (“ISC-squared”) will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Two leading non-profits focused on cloud and information security, (ISC)² and Cloud Security Alliance (CSA), developed the Certified Cloud Security Professional (CCSP) certification to address the increased demand for cloud security expertise due to rapid growth in cloud. Recently named “The Next...
With an estimated 50 billion devices connected to the Internet by 2020, several industries will begin to expand their capabilities for retaining end point data at the edge to better utilize the range of data types and sheer volume of M2M data generated by the Internet of Things. In his session at @ThingsExpo, Don DeLoach, CEO and President of Infobright, will discuss the infrastructures businesses will need to implement to handle this explosion of data by providing specific use cases for filte...
SYS-CON Events announced today that Avere Systems, a leading provider of enterprise storage for the hybrid cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Avere delivers a more modern architectural approach to storage that doesn’t require the overprovisioning of storage capacity to achieve performance, overspending on expensive storage media for inactive data or the overbuilding of data centers ...
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies adopt disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advanced analytics, and DevO...
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 ad...
Join us at Cloud Expo | @ThingsExpo 2016 – June 7-9 at the Javits Center in New York City and November 1-3 at the Santa Clara Convention Center in Santa Clara, CA – and deliver your unique message in a way that is striking and unforgettable by taking advantage of SYS-CON's unmatched high-impact, result-driven event / media packages.
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...
DevOps is not just last year’s buzzword. Companies with DevOps practices are 2.5x more likely to exceed profitability, market share, and productivity goals. But how do you enable high performance? What can you do right now to start? Find out from DevOps experts including Gene Kim, co-author of "The Phoenix Project," and the Dynatrace Center of Excellence.
SYS-CON Events announced today that iDevices®, the preeminent brand in the connected home industry, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. iDevices, the preeminent brand in the connected home industry, has a growing line of HomeKit-enabled products available at the largest retailers worldwide. Through the “Designed with iDevices” co-development program and its custom-built IoT Cloud Infrastruc...
In most cases, it is convenient to have some human interaction with a web (micro-)service, no matter how small it is. A traditional approach would be to create an HTTP interface, where user requests will be dispatched and HTML/CSS pages must be served. This approach is indeed very traditional for a web site, but not really convenient for a web service, which is not intended to be good looking, 24x7 up and running and UX-optimized. Instead, talking to a web service in a chat-bot mode would be muc...
SYS-CON Events announced today that Men & Mice, the leading global provider of DNS, DHCP and IP address management overlay solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. The Men & Mice Suite overlay solution is already known for its powerful application in heterogeneous operating environments, enabling enterprises to scale without fuss. Building on a solid range of diverse platform support,...