As part of its latest move to regain profitability and just a few months after closing a major deal, Accretive Health is shoring up its senior management team.
Joseph Flanagan was named president of Accretive; he retains the title of COO. He joined the Chicago-based revenue-cycle management firm as COO in April 2013. He previously worked at General Electric and served as senior VP of worldwide operations and supply chain at Naperville, Ill.-based Applied Materials, according to a news release.
Christopher Ricaurte was promoted to CFO and treasurer. He takes over for Peter Csapo, who will help with the executive transition.
Ricaurte, a 20-year veteran of General Electric, has been Accretive's senior VP of revenue cycle operations since 2013.
Steve Shulman, chairman of Accretive's board of directors, said in a news release that Ricaurte "was the best choice to help us deliver operational and financial excellence for our client partners and our shareholders.”
In February, Accretive closed a deal with its largest client, St. Louis-based health system Ascension Health. Under the deal's terms, Ascension agreed to use Accretive as its sole revenue-cycle management provider for a term of 10 years. Ascension also formed an investment vehicle with TowerBrook Capital Partners that will make a $200 million investment in Accretive.
It was a bright point for a company that has faced significant financial setbacks.
In 2011, Accretive paid a fine and agreed to temporarily stop doing business in Minnesota to settle allegations of patient-privacy violations and overly aggressive bill-collection tactics.
Since then, the company has shaken up its C-suite, cut jobs and restructured its operations.
In the summer of 2015, Accretive rejected Ascension's offer to buy the company, deeming it too low.
Their most recent agreement requires Accretive to attempt to once again be listed on a stock exchange. In March 2014, the firm was delisted. A company must be traded at a minimum of $4 per share to be listed on the New York Stock Exchange or Nasdaq. Accretive shares traded at $2.39 as of 9:54 a.m. ET on Tuesday.
In 2015, Accretive reported $117.2 million in net services revenue, compared to $210.1 million during the prior year period. The company also reported a net income loss of $84.3 million during 2015, compared to a net income loss of $79.6 million during the previous year.
Accretive is slated to release first-quarter 2016 results on May 10.