Accretive slashes forecast as Minnesota exit hits profits

Accretive Health Inc.'s quarterly results missed analysts' expectations, and the medical billing services company cut its full-year forecast after it settled a lawsuit and shut down its operations in Minnesota. The company in July said it would wind down its Minnesota operations to settle a 6-month-old lawsuit by the state. The suit accused Accretive of aggressive collection tactics.
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It's only been days since Accretive Health said it would pull its business out of Minnesota to settle a 6-month-old lawsuit by the state of Minnesota that had led to the loss of a contract for the company.

But it didn't take long for the loss of that business to hurt the company's bottom line, Reuters reports. Accretive Health Inc.'s quarterly results missed analysts' expectations, and the medical billing services company cut its full-year forecast, Reuters says.

The lawsuit accused the company of violating state and federal health privacy laws through aggressive collection tactics.

The settlement banned the company from the state for at least two years.

Accretive had denied Minnesota's charges, but ultimately agreed to settle.

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Accretive seeks dismissal of Minnesota lawsuit

Accretive Health asked a federal judge to toss out a breach of privacy lawsuit filed by Minnesota Attorney General Lori Swanson. The suit involves the company's loss of a laptop computer containing data on more than 23,000 patients. It was filed before Swanson's report slamming Accretive for high-pressure debt collection tactics.

Lori Swanson

Swanson beefs up Minnesota suit against Accretive

Minnesota Attorney General Lori Swanson has filed more court papers expanding on the state's lawsuit against Accretive Health Services. Two dozen affidavits from hospital patients say the collection agency pressured them for payment while they were awaiting treatments. The suit claims Accretive violated collection laws and patient privacy rights. The company says the lawsuit contains mischaracterizations and distortions.

Settlement bans Accretive from Minnesota for at least two years

A settlement agreement in Minnesota's lawsuit against Accretive Health Services will keep the consulting firm from doing business in the state for at least two years. Accretive also agreed to pay $2.5 million in restitution to patients, although the company says it is admitting no wrongdoing. Attorney General Lori Swanson sued Accretive over aggressive payment collection, alleging the company invaded patients' privacy and subjected some to emergency room shakedowns before they'd been treated.

Accretive files motion to dismiss lawsuit, says allegations are 'simply wrong'

The Chicago-based consulting firm wants a federal judge to throw out a second amended complaint filed by Minnesota Attorney General Lori Swanson after more patients came forward accusing the company of overly aggressive billing and collection tactics, the Pioneer Press reports. Accretive Health is accused of violating state and federal privacy laws, state debt collection laws and state consumer protection laws through its work with Minneapolis-based Fairview Health Services.

Accretive Health to answer questions on Capitol Hill

Executives from the medical debt collector will be in Washington, D.C. on Friday to address concerns about the companies practices. Last week, Minnesota Attorney General accused the Chicago-based firm of using aggressive collection tactics at Fairview Health Services. Accretive Health has denied any wrong doing.

Accretive says it's addressing concerns raised in Swanson's report

Accretive Health says it's working with advisers on addressing the concerns about high-pressure tactics that Minnesota Attorney General Lori Swanson raised in her report last week. But the medical debt collection agency calls it a "flagrant distortion" to say the company solicited payments from patients in their hospital beds.

Fairview Health Services terminates contract with Accretive Health

The health care system felt it was necessary to cut its ties with the debt collector. Minnesota Attorney General Lori Swanson accused Chicago-based Accretive of using high-pressure strategies to get Minnesota hospital patients to pay for their treatments. The Business Journal reports Fairview began reducing its contract with the collection firm after a laptop with unencrypted patient information was stolen. Meanwhile, a Democratic Congressman from California is now calling for a federal investigation.