Accretive Health, the publicly-traded Chicago-based hospital financial consulting firm, quietly released its restated earnings last month and nearly $1.4 billion in revenue in its original filings is no longer included.
For 2013, Accretive reported net income of $130.1 million on revenue of $504.8 million. However, it reported losses for 2012 and 2011 of $119.7 million and $71.7 million, respectively.
Accretive's restated revenue in 2012 was $72.3 million, and $102 million for 2011. Accretive's original 2011 numbers included net income of $29.2 million on revenue of $826.3 million. Through the third quarter of 2012, it reported net income of $3.7 million on revenue of $713.6 million.
Accretive mentioned some, but not all, restated data for calendar 2010 in its filings with the Securities and Exchange Commission. It had previously noted that the need for restatements go back to the second quarter of 2010.
In an announcement, Accretive noted that "under generally accepted accounting principles (GAAP), the vast majority of revenue generated from Accretive Health's revenue cycle agreements is recognized in periods substantially later than when the Company provides services to its customers. Revenue recognition occurs when Accretive Health and its customers reach a final determination of the value generated under the Company's performance-based contracts."
Accretive officials told the Chicago Tribune that they don't have reason to suspect fraud.
The restatement is just one of many issues that has bedeviled Accretive, which agreed to stop conducting business in Minnesota for four years after that state's attorney general determined it pressured patients at Minneapolis-area hospitals to pay in full before they received care.
"Completing the restatement is an important milestone for Accretive Health, and we appreciate the patience of our customers and shareholders as we worked through this process, as well as our employees for continuing to deliver outstanding service to our customers," Emad Rizk, M.D., Accretive's chief executive officer, said in the announcement. "While the restatement put our financial reporting on hold, we have focused on improving our operational execution and advancing our IT infrastructure during this period."
The company did not release any quarterly earnings data for 2014 but indicated it would focus its efforts on doing so.