Healthcare Business News

Accretive Health delays release of financial results

By Beth Kutscher
Posted: February 26, 2013 - 7:30 pm ET

Accretive Health, under fire for its allegedly aggressive hospital bill collection practices, is postponing the release of its financial results while it evaluates a change in how it recognizes revenue from its revenue-cycle management agreements.

The healthcare information technology and debt collection firm had originally planned to report its fourth-quarter and full-year financial results Wednesday. It is also postponing the investor conference call scheduled for the same day as well as the filing of its annual report.

The change would affect whether revenue is recorded as contracts are signed or after bills are paid.

A spokesman for the company said the decision is “related to our year-end wrap-up” and “part of our normal routine.” He added that the re-evaluation was not prompted by any change in reporting requirements or in response to industry peers.

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A news release from the company noted the potential changes are not expected to affect the total revenue recognized over the life of a contract or the “timing or magnitude” of cash flow from operations.

However, they could lead to “an increase in deferred revenue or other liabilities reported in prior periods,” the release said, adding the company may be required to restate prior-period financial reports.

Chicago-based Accretive reported in November that third-quarter net income decreased to $2.8 million compared with $7.3 million in the third quarter of 2011. The company, which was sued by the Minnesota attorney general's office for violating patient privacy and consumer protection laws, said the litigation settlement and subsequent exit from the state hurt results.

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