secwatch.observer — SEC 8-K summary
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Issuer:     Evolent Health, Inc. (EVH)
CIK:        0001628908
Form:       8-K/A
Filed at:   2023-10-16T23:59:59+00:00
Accession:  0001628908-23-000149
Event type: other_material
Sentiment:  negative
Materiality: 0.60
Item codes: 9.01
LLM model:  deepseek-v4-flash:cloud@v2

Evolent restates Magellan Specialty Health financials for revenue recognition error
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- Restatement corrects ASC 606 accounting: net accounting applied to risk-based contracts instead of gross (previously overstated revenue).
- Managed care and other revenue adjusted: down $339M for nine months ended Sep 2021 (to $162.7M) and $106M for Sep 2022 (to $194.4M); net income unchanged.
- Balance sheet: accounts receivable reduced by $79.7M (Dec 2021) and $33.6M (Sep 2022); medical claims payable and other medical liabilities eliminated.
- Depreciation and amortization reclassified: $1.1M (2021) and $1.5M (2022) moved from D&A to direct service costs.
- Restatement has no impact on income before income taxes or net income for any period.

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/1628908/000162890823000149/0001628908-23-000149-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/1628908/000162890823000149/evh-20230119.htm
  HTML page:      https://secwatch.observer/filing/0001628908-23-000149

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