Accretive Health expects up to $200M in IPO

Posted May 4, 2010 at 1:10 p.m.

Dow Jones Newswires | Accretive Health Inc. disclosed estimated
terms of its initial public offering, projecting more money will be
raised than first estimated.

The company, which aims to help health-care providers maximize revenue
and profit through such means as managing back-office operations and
working with health insurers, projects the sale of at least 13.3
million shares at a price of $14 to $16 each. Accretive and current
holders would each sell half the shares available. There will be some
90 million shares outstanding after the IPO.

When the company’s initial IPO plans were filed with the Securities and Exchange Commission in September, the company projected the sale of up to an estimated $200 million.

In that filing, Accretive said hospitals or doctors “often fail” to get the total owed from third-party payers and patients, “leading to significant bad debt write-offs, uncompensated care, payor denials and corresponding administrative write-offs, as well as lost revenue for missed charges.”

The company last year had earnings of $14.6 million on revenue of $510.2 million, compared with year-earlier profit of $1.2 million on revenue of $398.5 million.

Accretive Health plans to use proceeds from its offering for potential purposes including acquisitions and expansion. The company has applied to list its shares on the New York Stock Exchange under the symbol AH.


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