, the Chicago-based revenue-cycle management firm, will now trade on the over-the-counter market
after failing to meet a New York Stock Exchange deadline for reporting its long-delayed financial results.
The company was delisted from NYSE as it restates financial results from as far back as 2011. Accretive said it needs to restate the results to account for errors involving when it recognizes revenue from its contracts. That process, which the company said is taking longer than expected, has delayed its subsequent results for 2012 and 2013.
In the meantime, it remains unclear what effect Accretive's recent legal and operational challenges
have had on its client base or operating margins.
Accretive came under fire in Minnesota for alleged patient privacy violations and aggressive bill collection practices
, resulting in a $2.5 million settlement with the state attorney general in 2012. The settlement also required Accretive to suspend operations in the state for at least two years; at that time the company had projected annual revenue of $23 million to $25 million in Minnesota.
The company in January also settled with the Federal Trade Commission
over a 2011 data breach after a laptop containing 23,500 patient records was stolen from an employee's car. That settlement required it to set up an information security program that will be monitored by a third party.
That same month, Accretive implemented a restructuring program that will allow it to cut costs, including up to 170 jobs, while increasing its investments in information technology and business development efforts.
The company also is operating under a new leadership team, after replacing its CEO, chief financial officer and chief operating officer. On an investor call last April to introduce Stephen Schuckenbrock, former president of Dell Services, as its new chief executive, executives declined to provide a timeline
for when the restated results might be released.
“There's a lot of fantastic people at the company that are doing some incredible work to make sure that everything is vetted properly and that we can be very transparent as we go forward,” Schuckenbrock said. “And I'm comfortable that that will happen as soon as they're ready.”Follow Beth Kutscher on Twitter: @MHbkutscher