Mt. Laurel, N.J.-based MedQuist, the nation's largest medical transcription company, which has been plagued by billing and financial reporting scandals, last week announced restated financial results for the last three calendar years. In November 2004, after lawsuits from hospitals and other providers charged MedQuist with overbilling them in a class-action suit, the company warned investors that earlier posted financial results were not reliable. The "partial, unaudited" results reported a $23 million operating profit on 2004 revenue of $456 million, down from a $61 million operating profit on 2003 revenue of $490 million, the result of declines in transcription volume, pricing declines and lost clients. For the first six months of 2005, revenue decreased to $213 million from $232 million in the same period of 2004. MedQuist reported an operating loss of $8 million for the first six months of 2005 compared with an operating profit of $20 million at the same time last year.
MedQuist restates earnings downward
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