By Zeba Siddiqui
Feb 27 (Reuters) - Shares of Accretive Health Inc
fell as much as 30 percent on Wednesday as the medical billing
services provider withdrew its forecast and indefinitely delayed
the filing of its fourth-quarter results, saying it was
evaluating the timing of revenue recognition.
The company, which has faced allegations of improper billing
of patients, said in a statement on Tuesday it may restate
financial results for previous periods if it determines it needs
to change the manner in which it recognizes revenue.
Eric Coldwell, an analyst at Robert W. Baird & Co. said he
was not surprised by the fall in its share price because there
was lack of information on what was going on.
"The company's gone radio silent, so we don't know the
complete extent of what they're reviewing and what the outcome
may be. It's a riskier situation," he said.
Accretive exited its operations in Minnesota last year after
settling a lawsuit with the state, where it was accused of
violating health privacy laws through aggressive collection
tactics in the state. The company also lost an important
customer, Fairview Health Services, due to the
lawsuit.
Accretive's stock has halved since the Minnesota allegations
went public, causing further public scrutiny of the company's
debt collection practices.
A few members of the U.S. House of Representatives sought
internal documents last April on the company's operations and
debt collection practices.
Analyst Coldwell said the revenue recognition issues could
result in a modest-to-moderate reduction in Accretive's future
earnings, but that would be followed by a similar or higher
growth in the future.
The company, which was scheduled to report fourth-quarter
results on Wednesday, disclosed that it ended 2012 with no debt
and about $177 million in cash and cash equivalents.
Analysts on average expect the Chicago-based company to
report earnings of about 9 cents per share on revenue of $237.2
million, according to Thomson Reuters I/B/E/S.
Accretive's shares were down 25 percent at $9.00 on the
Nasdaq.
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