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IPO -- Accretive Health (AH) lost hospital account in March qtr

|Includes: ATHN, ECLP, MDAS, R1 RCM Inc. (RCM)

Accretive Health (AH) expected IPO May 20
$1.35bb market cap at $15 price range mid-point

BUSINESS
. Provides healthcare revenue cycle management services.
. Mission is to help U.S. hospitals, physicians and other healthcare providers manage their revenue cycle operations more efficiently

SUMMARY
. Going into IPO with $8mm stockholder equity, pre-IPO
. Mid-range expected market cap value of $1.35bb
. Lost a hospital client in the March quarter, not a good sign pre-IPO.  As a result the March quarter showed declines in revenue, profit and ‘net patient revenue under management’, relative to the December 2009 quarter
In a high P/E multiple segment

COMPETITION
Currently competes 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.

see 'compare & contrast' and financial analysis in the AH IPOreport





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