American Renal hit after disclosure of accounting mistakes dating back to 2014

Shares of American Renal Associates Holdings Inc. ARA, -37.84% plunged 38% Thursday morning after the company’s disclosure late Wednesday that it would have to restate financial documents dating back to 2014 due to accounting mistakes. An audit committee reporting to the company’s board of directors found American Renal did not properly reconcile its contractual allowance estimates for discounts and price concessions with cash received from patient claims from prior periods, according to a securities filing. The committee also found that American Renal did not record a reserve for uncollectible amounts across all of its payer categories during non-reliance periods. The company will file restated results for those periods “as soon as practicable,” the securities filing said. American Renal’s CFO Jason Boucher resigned on Tuesday, the company said. Mark Herbers, a director at AP Services LLP, will take over as interim CFO and chief accounting officer. Shares of American Renal have fallen 48% in the year to date, while the S&P 500 SPX, +0.39% has gained 11.8%.

https://www.marketwatch.com/story/american-renal-stock-down-38-after-companys-disclosure-of-accounting-mistakes-dating-back-to-2014-2019-03-28