UPDATE: Piper Jaffray Lowers Accretive Health's PT; Concerns Growing

In a research report published today by Piper Jaffray, Accretive Health's AH Fairview contract transition has fueled more concerns among the research firm. According to Piper Jaffray, “Specifically we are worried about three items – one, uncertainty regarding what is required to close MN Attorney General's Case. Two, risk of this case becoming a precedent for other states, which will significantly impact AH's offering. Three, decrease in the perceived stickiness of AH's solutions, which was the cornerstone of the company's valuation. Apart from the above concerns, we are cutting our CY12 and CY13 estimates reflecting the lost revenues from the Fairview contract. Maintain Underweight rating, cutting target to $16 (from $18).” Accretive Health closed yesterday at $18.79.