Accretive Health and Ascension in St. Louis have completed a transaction that included revising and expanding their existing services agreement for another 10 years.
Under the new service contract, Accretive will exclusively provide revenue cycle services and physician advisory services to Ascension's hospitals. A newly formed investment vehicle — owned by Ascension and TowerBrook Capital Partners — has invested $200 million in Accretive Health, in exchange for convertible preferred stock and warrants.
Accretive Health expects to begin transitioning Ascension's hospitals to the new service agreement over the next six months.
"Ascension has been a valued partner since the founding of the company and we are pleased to enter a new phase in our relationship as long-term strategic partners," said Emad Rizk, MD, president and CEO of Accretive Health. "The highly complementary relationship with Ascension provides us with a significant growth trajectory, and we look forward to the benefits it will deliver to our customers, our employees and our shareholders."
The two companies announced the transaction Dec. 8 of last year.