Exhibit

Emad Rizk, M.D., President and Chief Executive Officer of Accretive Health, commented, “Over the last year we have transformed our organization, with focus on scalable infrastructure and applications, operational excellence, and expanding shared services capacity. I am confident in our team’s ability to execute over the next few years on the anticipated addition of more than $8 billion in net patient revenue under management from Ascension.”

The Company at this time is not providing financial guidance for 2016 since its annual planning process is still ongoing as a result of the recent signing of the new master professional services agreement (MPSA) with Ascension. The Company expects to begin to transition Ascension hospitals currently served by the Company to the new MPSA terms in the second quarter of 2016, and anticipates Ascension hospitals not currently served by Accretive to begin to transition to the Company’s platform in the third quarter of 2016. The Company expects to fund infrastructure investments and growth initiatives with capital raised in the recently completed transaction with Ascension and TowerBrook Capital Partners.

Accretive Health’s management team will host a conference call today at 4:30 p.m. Eastern Time to discuss the results and business outlook. To participate, please dial 888-822-6508 (440-996-5712 outside the U.S. and Canada) using conference code number 57301868. A live webcast and replay of the call will be available at the Investor Relations section of the Company’s web site at www.accretivehealth.com.

In order to provide a more comprehensive understanding of the information used by Accretive Health’s management team in financial and operational decision making, the Company supplements its GAAP consolidated financial statements with certain non-GAAP financial measures, which are included in this press release. These include gross and net cash generated from customer contracting activities and adjusted EBITDA. Our Board and management team use these non-GAAP measures as (i) one of the primary methods for planning and forecasting overall expectations and for evaluating actual results against such expectations; and (ii) a performance evaluation metric in determining achievement of certain executive incentive compensation programs, as well as for incentive compensation plans for employees.

Gross cash generated from customer contracting activities is defined as GAAP net services revenue, plus the change in deferred customer billings. Accordingly, gross cash generated from customer contracting activities is the sum of (i) invoiced or accrued net operating fees, (ii) cash collections on incentive fees and (iii) other services fees. Net cash generated from customer contracting activities reflects non-GAAP adjusted EBITDA and the change in deferred customer billings.

Adjusted EBITDA is defined as net income before net interest income (expense), income tax provision, depreciation and amortization expense, share-based compensation expense, restatement-related expense, reorganization-related expense and certain non-recurring items. The use of adjusted EBITDA to measure operating and financial performance is limited by our revenue recognition criteria, pursuant to which GAAP net services revenue is recognized at the end of a contract or other contractual agreement event. Adjusted EBITDA does not adequately match corresponding cash flows from customer contracting activities. As a result, the Company uses gross cash and net cash generated from customer contracting activities to better compare cash flows to operating performance.

Deferred customer billings include the portion of both (i) invoiced or accrued net operating fees and (ii) cash collections of incentive fees, in each case, that have not met our revenue recognition criteria. Deferred customer billings are included in the detail of our customer liabilities balance in the consolidated balance sheet available in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015.

This press release contains forward-looking statements, and in particular, any statements about the benefits, expectations and financial impact of the strategic relationship and renewed master professional services agreement with Ascension and our future growth, plans and performance are forward-looking statements. All forward-looking statements contained in this press release involve risks and uncertainties. The Company’s actual results and outcomes could differ materially from those anticipated in these forward-looking statements as a result of various factors, including the factors set forth under the heading “Risk Factors” in its Annual Report on Form 10-K for the year ended December 31, 2015, filed with the SEC on March 10, 2016. The words “strive,” “objective,” “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “vision,” “would,” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. The Company has based these forward-looking statements on its current expectations and projections about future events. Although the Company believes that the expectations underlying any of its 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.

All forward-looking statements included in this press release are expressly qualified in their entirety by these cautionary statements. The Company cautions readers not to place undue reliance on any forward-looking statement that speaks only as of the date made and to recognize that forward-looking statements are predictions of future results, which may not occur as anticipated. Actual results could differ materially from those anticipated in the forward-looking statements and from historical results, due to the uncertainties and factors described above, as well as others that the Company may consider immaterial or does not anticipate at this time. Although the Company believes that the expectations reflected in its forward-looking statements are reasonable, the Company does not know whether its expectations may prove correct. The Company’s expectations reflected in its forward-looking statements can be affected by inaccurate assumptions it might make or by known or unknown uncertainties and factors, including those described above. The risks and uncertainties described above are not exclusive, and further information concerning the Company and its business, including factors that potentially could materially affect its financial results or condition or relationships with customers and potential customers, may emerge from time to time. The Company assumes no, and it specifically disclaims any, obligation to update, amend, or clarify forward-looking statements to reflect actual results or changes in factors or assumptions affecting such forward-looking statements. The Company advises investors, however, to consult any further disclosures it makes on related subjects in our periodic reports that it files with or furnishes to the SEC.

Accretive Health is a leading provider of revenue cycle services and physician advisory services to healthcare providers. Accretive Health’s mission is to help healthcare providers strengthen their financial stability so they can deliver better care at a more affordable cost to the communities they serve, increasing healthcare access for all. Accretive Health’s distinctive operating model includes people, processes, and sophisticated integrated technology/analytics that help customers realize sustainable improvements in their operating margins and improve the satisfaction of their patients, physicians, and staff. Accretive Health’s customers typically are multi-hospital systems, including faith-based or community healthcare systems, academic medical centers and independent ambulatory clinics, and their affiliated physician practice groups.



	December 31,
	2015			2014
Assets
Current assets:
Cash and cash equivalents	$	103,497		$	145,167
Short-term investments	1,023			—
Restricted cash	—			5,000
Accounts receivable, net	10,194			4,438
Prepaid income taxes	1,102			6,138
Current deferred tax assets	—			62,322
Other current assets	10,924			7,389
Total current assets	126,740			230,454
Property, equipment and software, net	27,217			14,594
Non-current deferred tax asset	300,825			201,163
Restricted cash equivalents	1,500			—
Goodwill and other assets, net	4,007			162
Total assets	$	460,289		$	446,373
Liabilities and stockholders’ equity (deficit)
Current liabilities:
Accounts payable	5,306			12,488
Current portion of customer liabilities	202,516			219,998
Accrued compensation and benefits	9,062			14,983
Other accrued expenses	15,743			15,680
Total current liabilities	232,627			263,149
Non-current portion of customer liabilities	432,477			317,065
Other non-current liabilities	8,498			8,405
Total liabilities	$	673,602		$	588,619
Stockholders’ equity (deficit):
Common stock, $0.01 par value, 500,000,000 shares authorized, 113,259,408 shares issued and 107,715,436 shares outstanding at December 31, 2015; 102,890,241 shares issued and 98,112,019 shares outstanding at December 31, 2014	1,133			1,029
Additional paid-in capital	322,492			307,075
Accumulated deficit	(481,773		)	(397,517		)
Accumulated other comprehensive loss	(2,488		)	(1,763		)
Treasury stock	(52,677		)	(51,070		)
Total stockholders’ equity (deficit)	(213,313		)	(142,246		)
Total liabilities and stockholders’ equity (deficit)	$	460,289		$	446,373



	Three Months Ended December 31,						Year Ended December 31,
	2015			2014			2015			2014
Net services revenue	$	68,341		$	47,456		$	117,239		$	210,140
Operating expenses:
Cost of services	38,693			43,893			168,977			182,144
Selling, general and administrative	15,237			16,274			74,963			69,883
Restatement and other	3,493			18,859			9,343			86,766
Total operating expenses	57,423			79,026			253,283			338,793
Income (loss) from operations	10,918			(31,570		)	(136,044		)	(128,653		)
Net interest income	84			50			231			302
Income (loss) before income tax provision	11,002			(31,520		)	(135,813		)	(128,351		)
Income tax provision (benefit)	5,555			(13,869		)	(51,557		)	(48,731		)
Net income (loss)	$	5,447		$	(17,651	)	$	(84,256	)	$	(79,620	)
Net income (loss) per common share:
Basic	$0.06			($0.18)			$	(0.87	)	$	(0.83	)
Diluted	$0.06			($0.18)			$	(0.87	)	$	(0.83	)
Weighted average shares used in calculating net income (loss) per common share:
Basic	98,137,885			95,790,065			96,806,885			95,760,762
Diluted	98,751,254			95,790,065			96,806,885			95,760,762
Consolidated statements of comprehensive income (loss)
Net income (loss)	5,447			(17,651		)	(84,256		)	(79,620		)
Other comprehensive loss:
Foreign currency translation adjustments	(23		)	(310		)	(725		)	(304		)
Comprehensive income (loss)	$	5,424		$	(17,961	)	$	(84,981	)	$	(79,924	)



	Year Ended December 31,
	2015			2014			2013
Operating activities
Net income (loss)	$	(84,256	)	$	(79,620	)	$	130,083
Adjustments to reconcile net income (loss) to net cash provided by (used in) operations:
Depreciation and amortization	8,462			6,047			6,823
Share-based compensation	29,236			27,181			25,025
Loss on disposal	—			1,604			—
Provision (recovery) for doubtful receivables	(46		)	(430		)	634
Deferred income taxes	(52,690		)	(49,227		)	79,356
Excess tax benefit from share-based awards	—			(176		)	(15		)
Changes in operating assets and liabilities:
Accounts receivable	(5,709		)	20,548			658
Restricted cash equivalents	(1,500		)	—			—
Prepaid income taxes	5,058			3,794			(4,836		)
Other assets	(7,465		)	(47		)	14,434
Accounts payable	(7,162		)	8,251			3,378
Accrued compensation and benefits	(5,918		)	3,174			3,813
Other liabilities	248			(3,312		)	(2,955		)
Customer liabilities	97,930			(15,023		)	(201,975		)
Net cash provided by (used in) operating activities	(23,812		)	(77,236		)	54,423
Investing activities
Purchase of short-term investments	(1,023		)	—			—
Purchases of property, equipment, and software	(21,275		)	(6,034		)	(1,877		)
Net cash used in investing activities	(22,298		)	(6,034		)	(1,877		)
Financing activities
Excess tax benefit from share-based awards	—			176			15
Exercise of vested stock options	1,547			—			46
Purchase of treasury stock	(1,607		)	(370		)	(161		)
Restricted cash release from letter of credit	5,000			—			—
Net cash provided by (used in) financing activities	4,940			(194		)	(100		)
Effect of exchange rate changes in cash	(500		)	(260		)	(511		)
Net increase (decrease) in cash and cash equivalents	(41,670		)	(83,724		)	51,935
Cash and cash equivalents, at beginning of year	145,167			228,891			176,956
Cash and cash equivalents, at end of year	$	103,497		$	145,167		$	228,891
Supplemental disclosures of cash flow information
Income taxes paid	$	(1,088	)	$	(801	)	$	(1,742	)
Income taxes refunded	$	1,441		$	3,014		$	754



	Three Months Ended December 31,				2015 vs. 2014 Change					Year Ended December 31,				2015 vs. 2014 Change
	2015		2014		Amount			%		2015		2014		Amount			%

Consolidated Statement of Operations Data:
RCM services: net operating fees	$	46,832	$	14,639	$	32,193		n.m.		$	66,234	$	77,456	$	(11,222	)	(14.5	)%
RCM services: incentive fees	11,289		24,858		(13,569		)	(54.6	)%	20,311		99,934		(79,623		)	(79.7	)%
RCM services: other	6,790		2,316		4,474			n.m.		16,381		8,103		8,278			n.m.
Other services fees	3,430		5,643		(2,213		)	(39.2	)%	14,313		24,647		(10,334		)	(41.9	)%
Total net services revenue	68,341		47,456		20,885			44.0	%	117,239		210,140		(92,901		)	(44.2	)%
Change in deferred customer billings	4,337		13,238		(8,901		)	(67.2	)%	112,938		23,427		89,511			n.m.
Gross cash generated from customer contracting activities	$	72,678	$	60,694	$	11,984		19.7	%	$	230,177	$	233,567	$	(3,390	)	(1.5	)%
Components of Gross Cash Generated from Customer Contracting Activities:
RCM services: net operating fee	$	34,424	$	31,046	$	3,378		10.9%		$	123,185	$	121,730	$	1,455		1.2%
RCM services: incentive fee	20,155		19,841		314			1.6%		67,656		77,239		(9,583		)	(12.4)%
RCM services: other	14,669		5,805		8,864			n.m.		25,023		9,952		15,071			n.m.
Total RCM services fees	69,248		56,692		12,556			22.1%		215,864		208,921		6,943			3.3%
Other services fees	3,430		4,002		(572		)	(14.3)%		14,313		24,646		(10,333		)	(41.9)%
Gross cash generated from customer contracting activities	$	72,678	$	60,694	$	11,984		19.7%		$	230,177	$	233,567	$	(3,390	)	(1.5)%



	Three Months Ended December 31,						2015 vs. 2014 Change				Year Ended December 31,						2015 vs. 2014 Change
	2015			2014			Amount			%	2015			2014			Amount			%

Net income (loss)	$	5,447		$	(17,651	)	$	23,098		n.m.	$	(84,256	)	$	(79,620	)	$	(4,636	)	5.8%
Net interest income	(84		)	(50		)	(34		)	68.0%	(231		)	(302		)	71			(23.5)%
Income tax provision (benefit)	5,555			(13,869		)	19,424			n.m.	(51,557		)	(48,731		)	(2,826		)	5.8%
Depreciation and amortization expense	1,906			1,768			138			7.8%	8,462			6,047			2,415			39.9%
Share-based compensation expense	6,353			4,481			1,872			41.8%	31,671			20,172			11,499			57.0%
Restatement and other	3,493			18,859			(15,366		)	(81.5)%	9,343			86,766			(77,423		)	(89.2)%
Adjusted EBITDA	22,670			(6,462		)	29,132			n.m.	(86,568		)	(15,668		)	(70,900		)	n.m.
Change in deferred customer billings	4,337			13,238			(8,901		)	(67.2)%	112,938			23,427			89,511			n.m.
Net cash generated from customer contracting activities	$	27,007		$	6,776		$	20,231		n.m.	$	26,370		$	7,759		$	18,611		n.m.



	Three Months Ended December 31,				Year Ended December 31,
	2015		2014		2015		2014

GAAP net services revenue	$	68,341	$	47,456	$	117,239	$	210,140
Increase in deferred customer billings	4,337		13,238		112,938		23,427
Gross cash generated from customer contracting activities (non-GAAP)	72,678		60,694		230,177		233,567
Operating Expenses¹:
Cost of services	35,504		41,377		154,233		170,872
Selling, general and administrative	10,167		12,541		49,574		54,936
Sub-total	45,671		53,918		203,807		225,808

Net cash generated from customer contracting activities (non-GAAP)	$	27,007	$	6,776	$	26,370	$	7,759

Net cash generated margin (non-GAAP)	37.2%		11.2%		11.5%		3.3%


•	GAAP net services revenue of $68.3 million, compared to $47.5 million for the fourth quarter of 2014


•	GAAP net income of $5.4 million, compared to a net loss of $17.7 million for the fourth quarter of 2014


•	GAAP net services revenue of $117.2 million, compared to $210.1 million for 2014


•	GAAP net loss of $84.3 million, compared to a net loss of $79.6 million for 2014