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Accretive Health (NYSE:AH), a provider of healthcare revenue cycle management services, priced its IPO yesterday at $12 per share, below range.

Business Overview (from prospectus)

Accretive Health is a leading provider of healthcare revenue cycle management services. Our business purpose is to help U.S. healthcare providers to more efficiently manage their revenue cycle operations, which encompass patient registration, insurance and benefit verification, medical treatment documentation and coding, bill preparation and collections.

Our customers typically are multi-hospital systems, including faith-based or community healthcare systems, academic medical centers and independent ambulatory clinics, and their affiliated physician practice groups. Our integrated technology and services offering, which we refer to as our solution, helps our customers realize sustainable improvements in their operating margins and improve the satisfaction of their patients, physicians and staff. Our solution is adaptable to the evolution of the healthcare regulatory environment, technology standards and market trends, and requires no up-front cash investment by our customers.

Offering: 10 million shares at $12 per share. The proceeds from the issue will be used for general corporate purposes.

Lead Underwriters: Goldman, Sachs & Co. (NYSE:GS), Credit Suisse(NYSE:CS), J.P. Morgan (NYSE:JPM)

Financial Highlights:

Net revenue increased $13.5 million to $125.9 million for the three months ended March 31, 2010 from $112.5 million for the three months ended March 31, 2009...Costs of services increased $9.6 millionto $102.3 million for the three months ended March 31, 2010 from $92.7 million for the three months ended March 31, 2009...Operating margin increased 19.7% to $23.7 million for the three months ended March 31, 2010 from $19.8 million for the three months ended March 31, 2009...Operating income increased $1.4 million to $1.2 million for the three months ended March 31, 2010 from an operating loss of $0.2 million for the three months ended March 31, 2009...Net income increased $1.0 million, to $0.3 million for the three months ended March 31, 2010 from a net loss of $0.6 million for the three months ended March 31, 2009...

Competitors

While we do not believe any single competitor offers a fully integrated, end-to-end revenue cycle management solution, we face competition from various sources. We also currently compete with three categories of external participants in the revenue cycle market, most of which focus on small components of the hospital revenue cycle; software vendors and other technology-supported revenue cycle management business process outsourcing companies, such as athenahealth, Eclipsys and MedAssets; traditional consultants, either specialized healthcare consulting firms or healthcare divisions of large accounting firms, such as Deloitte Consulting and Huron Consulting; and IT outsourcers, which typically are large, non-healthcare focused business process outsourcing and information technology outsourcing firms, such as Perot Systems and Computer Science Corporation/First Consulting.

Additional Resources:

Source: Accretive Health IPO Prices Below Range