Feb 27 (Reuters) – Shares of Accretive Health Inc
fell more than 30 percent before the bell, as the medical
billing services provider withdrew its forecast and indefinitely
delayed the filing of its fourth-quarter results, saying it was
evaluating the timing of revenue recognition.
The company, which has faced allegations for improper
billing of patients, said in a statement on Tuesday it may
restate financial results for previous periods if it determines
it needs to change the manner in which it recognizes revenue.
Accretive Health, which was scheduled to report
fourth-quarter results on Wednesday, disclosed that it ended
2012 with no debt and about $177 million in cash and cash
equivalents.
Analysts on average expect the Chicago-based company to
report earnings of about 9 cents per share on revenue of $237.2
million, according to Thomson Reuters I/B/E/S.
Accretive Health’s stock, which has lost more than half its
value over the past year, was trading at $8.35 before the bell.
They closed at $12.11 on Tuesday on the New York Stock Exchange.
The company exited its operations in Minnesota last year
after settling a lawsuit with the state, where it was accused of
violating health privacy laws through aggressive collection
tactics in the state. The company also lost an important
customer, Fairview Health Services, due to the
lawsuit.
Following this, a few members of the U.S. House of
Representatives also sought internal documents on the company’s
operations and debt collection practices.
(Reporting by Zeba Siddiqui in Bangalore; Editing by Roshni
Menon)
