R1 RCM completed the restatement of previously issued financial statements after it previously identified "errors related to the accounting for certain acquiree compensation costs (e.g., transaction bonuses and accelerated equity award vesting) incurred as a result of historical acquisitions."
Restatements were completed for the years ended Dec. 31, 2021, and Dec. 31, 2022, and the interim periods for each of the quarters within 2022 and 2021, as well as for the first two quarters of 2023, according to a Dec. 4 R1 news release. The company also filed its Form 10-Q for the third quarter of 2023.
The adjustments in the restated financial statements had:
- No effect on 2021 and 2022 revenue or adjusted EBITDA.
- No material effect on R1's previously reported results of operations for the first three quarters of 2023.
- No effect on R1's cash, business operations or 2023 outlook.
R1 said in a Nov. 13 news release that the expenses for certain acquiree compensation expenses should have been recorded as "other expenses" within the consolidated statements of operations and comprehensive income, but instead were included in the purchase price allocations and ultimately recorded as goodwill in the consolidated balance sheets.
"We are pleased to have resolved this technical accounting issue identified by R1," CEO Lee Rivas said in the Dec. 4 news release. "Our entire team remains focused on driving sustainable value over the long term, maintaining our position as the preferred partner for providers and increasing demand for our solutions."