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.

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.

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.

Accretive stock plunges on regulator's report

Chicago-based Accretive Health Inc.'s stock was down more than 11 percent after it was announced Thursday that aggressive collection practices at a Minnesota hospital formerly affiliated with the company violated federal patient protection laws, the Chicago Tribune reports.

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 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 CEO pokes back at Swanson, media

Without getting into specifics, Accretive Health's CEO suggested to an interviewer: "Do your own research on this attorney general and her approaches." The AG in question is Minnesota's Lori Swanson, who issued a report this week slamming Accretive's high-pressure tactics in collecting payments from hospital patients. The CEO says Accretive will weather the "current media blitz."

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.