Accretive Health Continues Company Restructuring
January 24 2014 - 9:15AM
Business Wire
Changes designed for resource efficiency and
increased organizational effectiveness
Accretive Health, Inc. (NYSE: AH), today announced the
continuation of a corporate restructuring plan originated last
year. This plan is designed to allow the company to more
effectively and efficiently allocate necessary resources for
innovation, growth and enhanced client service. Specific changes
include optimizing Accretive Health’s current geographic footprint
by transitioning certain corporate functions currently housed in
Chicago to locations where the company can optimize costs and
customer service and to markets where there are established
operations, such as Detroit, Mich.
The plan is part of an ongoing restructuring process to reduce
corporate costs that began in June 2013. The company’s headquarters
will remain in Chicago where it will maintain a sizeable presence
in the city with its AccretivePAS® business and key corporate
functions including core IT. The plan will, however, require
reductions in the Chicago-based workforce. Those changes will begin
today and are planned to be implemented in phases over the next
several months. Additional changes will include the relocation of
some functions to Dallas, Texas.
“We continue to see client demand for our solutions and service
offerings,” said Accretive Health President and CEO Steve
Schuckenbrock. “The continuation of our restructuring efforts is
necessary in order for us to take advantage of market
opportunities, address the changing dynamics in the healthcare
industry and enable our company to become more nimble and
responsive to client needs.
“We are confident that these strategic decisions will help us
achieve our overall cost reduction goals, invest in growth and
improve long-term profitability,” he continued.
The restructuring plan includes two key priorities: moving
people to be closer to clients and increasing organizational
effectiveness. Specific aspects of the plan include:
- Adding and relocating talent and
resources to increase client-facing capabilities. Accretive Health
has allocated 116 resources into client-facing roles.
- Creating a patient-centric culture
through significant investments in resources and technology focused
on patient engagement strategies. Approximately 35 percent of the
company’s 2014 IT investment is focused on patient engagement
strategies.
- Delivering consistent execution by
deploying robust infused operating methodologies and creating
disciplined operational capabilities through formal operator
training and certification.
“Our employees have done a remarkable job in the face of ongoing
changes as we strengthen our focus to create a more patient and
client-centric culture. I am extremely proud of and thankful for
their hard work and commitment,” Schuckenbrock said. “I am
confident that with this plan in place, we will be well positioned
to reduce corporate costs and provide even greater value to our
clients, their patients and our shareholders.”
Safe Harbor
The above statements regarding the restructuring plan and our
ability to achieve cost reduction goals and improve long-term
profitability are forward-looking statements and are subject to
risks and uncertainties. We have based these statements on the
current status of the restructuring plan, our operating plans for
2014, other information now known to us and general economic
conditions. Although we believe that the assumptions and
expectations reflected in these statements are reasonable, our
ability to achieve cost reduction goals and achieve and/or maintain
profitability are all subject to known and unknown risks and
uncertainties and could vary materially from our current
expectations. We assume no, and we specifically disclaim any,
obligation to update these statements to reflect actual results or
changes in factors or assumptions affecting this statement. We
advise investors to consult any further disclosures we make on
these topics in our SEC filings.
About Accretive Health
At Accretive Health, our mission is to partner with healthcare
communities to serve as a catalyst for a healthier future for all.
For more information, visit www.accretivehealth.com.
Accretive Health, Inc.Investor Relations:Atif
Rahim312.324.5476investorrelations@accretivehealth.comorMedia
Relations:Brian Pitts312.475.5921brian.pitts@hkstrategies.com
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