Accretive Health Files Motion to Dismiss Minnesota Attorney General Lawsuit

Accretive Health, Inc. (NYSE:AH) today filed a motion to dismiss the Minnesota Attorney General’s Complaint in federal district court in Minnesota. The motion denies the Attorney General’s claims and requests that the Court dismiss the complaint, in its entirety, with prejudice. As stated in the motion, the Company believes “…the Attorney General’s First Amended Complaint includes allegations that are factually baseless and legally indefensible. What is worse is that rather than litigate this case in the courtroom, the Attorney General orchestrated a nationwide media campaign against Accretive Health.”

The motion includes the following grounds for dismissing the case:

1) The core of this case involves the criminal theft of a password-protected laptop. Under the federal Health Insurance Portability and Accountability Act (HIPAA) and the Minnesota Health Records Act, a company cannot be held liable for the unforeseeable criminal act of a third party stealing a corporate laptop. Further, in the ten months since the laptop was stolen, there is no evidence (and the Attorney General does not even claim) that any patient data has been compromised. As a result, in the absence of any injury, the Attorney General lacks legal standing to pursue claims under HIPAA and the Minnesota Health Records Act as a matter of law.

2) On February 3, 2012, Accretive Health entered into a Consent Order with the Minnesota Department of Commerce to address its debt collection practices in Minnesota. Accretive Health continues to work cooperatively with the Department of Commerce. Under fundamental principles of law, the Attorney General is barred from pursuing the identical claims already addressed by a fellow state official.

3) The Attorney General’s consumer fraud claims are baseless in fact and law. In particular, it is undisputed that information about Accretive Health’s Quality and Total Cost of Care (“QTCC”) services at Fairview Health System, aimed at developing strategies to reduce emergency room admissions and in-patient stays for the sickest five percent of patients, were widely disseminated to the public in securities filings and media accounts, defeating any fraud claim.

As with all litigation, no assurance can be provided as to the outcome of the matters discussed herein.

About Accretive Health

Accretive Health partners with healthcare providers to help them more effectively manage their revenue cycles, strengthen their financial stability, and improve the quality of care they provide while reducing overall healthcare costs. Our people, processes and sophisticated integrated technology complement our clients' existing resources to enhance results for patients, physicians and staff. For more information, please visit www.accretivehealth.com.

Safe Harbor Statement

This document contains forward-looking statements, including statements regarding the allegations made by the Minnesota Attorney General, the lawsuit filed against us by the Minnesota Attorney General and our motion to dismiss the lawsuit, all of which involve risks and uncertainties. Our actual results and outcomes could differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth in our Annual Report on Form 10-K filed with the SEC on February 29, 2012, under the heading "Risk Factors". The words “strive,” “objective,” "anticipates," "believes," "estimates," "expects," "intends," "may," "plans," "projects," "would," “will,” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. We have based these forward-looking statements on our current expectations and projections about future events. Although we believe that the expectations underlying any of our forward-looking statements are reasonable, these expectations may prove to be incorrect and all of these statements are subject to risks and uncertainties. Should one or more of these risks and uncertainties materialize, or should underlying assumptions, projections, or expectations prove incorrect, actual results, performance, financial condition, or events may vary materially and adversely from those anticipated, estimated, or expected.

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