Dive Brief:
- Following a recent investigation over financial errors and questionable debt-collection practices, Accretive Health of Chicago is losing more than half its board of directors, reports The Chicago Tribune.
- Four members of the 13-member board have resigned and three others said they will not run for re-election in August.
- The board has added five directors, which will decrease its size to 11 members when the three directors leave in August.
Dive Insight:
In a statement, Accretive said the departing members chose to leave for personal reasons and professional commitments. However, their resignations came just months after Accretive restated financial results for the years 2011-2013 because it failed to properly book revenue or expenses for certain contracts. As the company was working to resolve those issues, it was delisted from the New York Stock Exchange.
Accretive's problems began around four years ago when an employee's unencrypted laptop was stolen, which put the health data of 23,500 patients at risk. This prompted an investigation by Minnesota Attorney General Lori Swanson, who eventually accused the company of aggressive patient collection practices and violating federal patient protection laws. The lawsuit was settled for $2.5 million in 2012, but Accretive did not admit to any wrongdoing.