R1 RCM to Restate Certain Previously Issued Financial Statements Due to Errors in Accounting for Expenses Associated with Historical Acquisitions
MURRAY, Utah, Nov. 13, 2023 (GLOBE NEWSWIRE) -- R1 RCM Inc. (NASDAQ: RCM) (“R1”), a leading provider of technology-driven solutions that transform the patient experience and financial performance of healthcare providers, today announced its decision to restate its previously issued financial statements for the years ended December 31, 2022 and 2021 and interim periods, as well as for the first two quarters of 2023.
- Immediately prior to the scheduled filing of its Form 10-Q for the third quarter 2023, R1 identified errors related to the accounting for certain acquiree compensation costs (e.g., transaction bonuses and accelerated equity award vesting) incurred as a result of historical acquisitions.
- These expenses should have been recorded as “Other expenses” within the consolidated statements of operations and comprehensive income and instead were included in the purchase price allocations and ultimately recorded as goodwill in the consolidated balance sheets.
- R1 has determined that the drivers of the corrections are acquiree compensation expenses equal to approximately $7.8 million for 2022 and $8.4 million for 2021.
- Based on information currently available, R1 does not expect a material impact to 2022 and 2021 revenue or Adjusted EBITDA.