Accretive CEO rejects allegations; company revises financial outlook

Accretive Health's chief executive said no other state attorneys general have contacted the company following a scathing report by Minnesota's attorney general.

Accretive CEO Mary Tolan, speaking in a conference call with analysts, rejected allegations brought by Minnesota Attorney General Lori Swanson that Accretive may have violated privacy and consumer protection laws.

Swanson sued the company in January after the theft of an Accretive laptop that contained patient information. Swanson followed the lawsuit with a report released last month that said Accretive may have violated state and federal laws as it aggressively sought to collect money from patients as they sought treatment at Fairview Health Services, a Twin Cities health system.

The company filed a motion on April 30 to dismiss the lawsuit. “The company intends to vigorously defend itself in court while continuing, as noted, to look for a reasonable solution, if possible,” Tolan said.

Fairview canceled a billing and collection contract with Accretive in March and ended a second quality and cost contract in April.

Tolan said the company will release a rebuttal on Friday and is working to establish a blue ribbon commission on patient financial transactions.

The company lowered its guidance for the year in response to the loss of Fairview's business and uncertainty. Net service revenue for the year is now projected to be $960 million to $992 million, down from the $1.09 billion to $1.12 billion projected in February, the company said in a news release.

Tolan said Accretive was in contract renewal talks with Ascension Health, the nation's largest Catholic health system and the company's largest client. She described the talks as going very well.

The company will consider changes to its bill collection business in coming weeks, Tolan said. Accretive could market billing technology but turn to third-party companies to collect debt, she said.