By R1 RCM, a leading technology supplier in the healthcare industry, announced that it will be restating its financial statements for the years 2021 and 2022, as well as the first two quarters of 2023.
According to the company, this restatement is a result of accounting errors related to compensation costs for certain acquisitions. However, R1 reassures that these errors are not expected to have a significant impact on its financial outlook for 2023 or its operating results for the first three quarters of the year.
Importantly, R1 emphasized that these accounting issues were not caused by any control overrides or misconduct. Instead, they were proactively identified by R1’s internal team, who promptly took action in collaboration with their auditors, Ernst & Young, to assess any potential impact on past financial statements.
Upon thorough review, R1 discovered that certain compensation costs associated with acquisitions, such as bonuses and stock awards, were inaccurately recorded as goodwill instead of being accounted for under other expenses.
R1’s Chief Executive, Lee Rivas, commented on the matter, stating, “This technical accounting issue was proactively identified by R1’s internal team, at which time we immediately took action to identify any potential impact on past financial statements in conjunction with our auditors, Ernst & Young.”
It is worth noting that this restatement is a proactive measure taken by R1 to ensure transparency and accuracy in their financial reporting.
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