In brief: Accretive to delay first-quarter earnings
Accretive Health Inc. will delay the filing of its first-quarter earnings as it restates past financial statements, the Chicago health revenue-cycle management company disclosed yesterday in a Securities and Exchange Commission filing. Citing the same rationale, Accretive still hasn't released its 2012 annual report. The company said in March it was reviewing revenue recognition from the second quarter of 2010 through the third quarter of 2012. SEC rules require quarterly statements to be filed within 45 days of the end of the quarter, May 15. Accretive's stock has fallen more than 40 percent to just over $10 since April 2012, when Minnesota officials accused it of using harsh collection tactics at a Minneapolis health system. Last month it replaced its CEO and co-founder Mary Tolan, elevating her to the board and putting in place Stephen Schuckenbrock, a Dell Inc. executive.
Rating agencies grade Riverside
Standard & Poor's and Moody's Investors Service Inc. have given investment-grade credit ratings to Kankakee-based Riverside Health System. "It shows not only the clinical excellence that we strive for but on the financial side as well," a Riverside spokesman said. S&P raised its long-term rating to "A+," five notches below Triple-A, from "A," while Moody's affirmed its long-term rating of "A2," six notches below its top score. Riverside had $271.1 million in total revenue in 2012 and about 62 percent of the market for inpatient services in its area. The system plans to issue up to $35 million in new bonds, in part to finance construction of an assisted-living facility in Bourbonnais, five miles north of the 267-bed hospital.
Franciscan Alliance to move Chicago Heights surgery center
Franciscan Alliance Inc. plans to close an underused outpatient surgical center in Chicago Heights, where revenue fell nearly 12 percent, to $9.6 million, in 2011, down from $10.9 million in 2010, according to an applicationfiled with the Illinois Health Facilities and Services Review Board, which must approve the closing. The Mishawaka, Ind.-based hospital network plans shift those patients to its Olympia Fields hospital, a spokesman said. The three-room surgical center is currently located in a medical office building at 333 Dixie Highway in Chicago Heights, where Franciscan still operates specialty and primary care practices.