Accretive Health is planning a restructuring that aims to save millions and includes laying off 41 employees, according to a St. Louis Business Journal report.
The Chicago-based revenue cycle management company announced the restructuring Wednesday, "to align its workforce to best position the company for its already committed future growth."
The restructuring includes adjusting internal functions, processes and organizational structure, with the associated reduction driven primarily in SG&A expense categories, the company said in its announcement.
Accretive anticipates annualized cost savings of approximately $16 million driven by a combination of the restructuring actions and other cost reduction initiatives. The restructuring will begin this month and is expected to be completed by the end of the third quarter of 2016.
"This restructuring is part of an overarching plan that allows us to take advantage of a unique window of time to right size the company and position Accretive Health for future growth while at the same time improving responsiveness, effectiveness and all-round performance excellence," Joe Flanagan, president and CEO of Accretive, said in a prepared statement.
The restructuring comes just months after Accretive and St. Louis-based Ascension finalized their 10-year partnership. It also comes about a month after Mr. Flanagan replaced Emad Rizk, MD, who stepped down from his positions as CEO and member of the Accretive board.