Accretive Health CEO Dr. Emad Rizk is leaving the struggling revenue-cycle company and has been replaced by Joseph Flanagan. Accretive's board of directors promoted Flanagan from his position as president and chief operating officer. Rizk, who also resigned his board seat, will stay on temporarily to assist Flanagan with the transition.
The leadership change comes less than six months after Ascension Health joined private equity company TowerBrook Capital Partners in buying a 40% stake in Accretive to ensure the company's financial viability. Ascension Health, the nation's largest Catholic hospital system, agreed in December to a 10-year sole-source contract for acute-care revenue-cycle products and support with Accretive. Ascension and TowerBrook will invest $200 million in the company.
Accretive said Flanagan, who joined the company in 2013, has a track record of standardizing best practices and promoting operating efficiencies.
In 2015, Accretive posted a net loss of $84.3 million, compared with a net loss of $79.6 million for 2014. Revenue in 2015 was $117.2 million. The company was delisted from the New York Stock Exchange in 2014 after failing to file financial reports on time to the Securities and Exchange Commission. Rizk was hired as CEO later that year in a leadership shakeup intended to right the ship.