Accretive Health — the Chicago-based healthcare debt and collections agency that has been surrounded in controversy over accusations of patient privacy violations and questionable collections practices — reported profit of $1.49 million in the first quarter of 2012, a major boost from the $160,000 net income it posted in the first quarter last year.
In April, Minnesota Attorney General Lori Swanson filed suit against Accretive for not protecting patient confidentiality and not informing patients of its extensive involvement in their healthcare. Accretive has since denied the AG's allegations and also refuted claims it hindered access to care and pressured patients to pay medical bills out of pocket before receiving care.
Accretive's first-quarter profit was not the only metric to skyrocket. Net services revenue increased 55 percent to $253.7 million compared with $163.7 million in the first quarter of 2011. At the end of the first quarter ended March 31, 2012, Accretive also posted $214.5 million in cash and cash equivalents compared with $119 million last year.
Despite the large earnings, Accretive lowered its outlook for the rest of the 2012 fiscal year, citing expenses related to the defense of the lawsuit with the Minnesota AG and the termination of its contract with Fairview Health Services in Minneapolis as determining factors. Fairview was one of the hospital systems the Minnesota AG named as a site of Accretive's alleged patient privacy and healthcare access violations.
"We continue to work hard to resolve the issues with the Minnesota attorney general," said Accretive CEO Mary Tolan. "On April 30, we filed a motion in federal district court in Minnesota to dismiss the charges the attorney general brought against our company in January. We will continue to pursue our legal defenses against charges that do not reflect the essence of what we do."
In April, Minnesota Attorney General Lori Swanson filed suit against Accretive for not protecting patient confidentiality and not informing patients of its extensive involvement in their healthcare. Accretive has since denied the AG's allegations and also refuted claims it hindered access to care and pressured patients to pay medical bills out of pocket before receiving care.
Accretive's first-quarter profit was not the only metric to skyrocket. Net services revenue increased 55 percent to $253.7 million compared with $163.7 million in the first quarter of 2011. At the end of the first quarter ended March 31, 2012, Accretive also posted $214.5 million in cash and cash equivalents compared with $119 million last year.
Despite the large earnings, Accretive lowered its outlook for the rest of the 2012 fiscal year, citing expenses related to the defense of the lawsuit with the Minnesota AG and the termination of its contract with Fairview Health Services in Minneapolis as determining factors. Fairview was one of the hospital systems the Minnesota AG named as a site of Accretive's alleged patient privacy and healthcare access violations.
"We continue to work hard to resolve the issues with the Minnesota attorney general," said Accretive CEO Mary Tolan. "On April 30, we filed a motion in federal district court in Minnesota to dismiss the charges the attorney general brought against our company in January. We will continue to pursue our legal defenses against charges that do not reflect the essence of what we do."
More Articles on Accretive Health:
Accretive Asks Judge to Dismiss Minnesota AG's Lawsuit
Accretive Denies Minnesota AG's Allegations
Congressman Pete Stark Requests Investigation of Accretive Health