athenahealth Issues Clarification; CMS Claims Reprocessing Immaterial to Fiscal Year 2011 Results

athenahealth, Inc. ATHN wishes to clarify certain information regarding the amount of client collections associated with claims being reprocessed by the Centers for Medicare and Medicaid Services. Following the athenahealth's Q2 2011 earnings release on July 21, 2011, management has received a number of questions regarding the impact of claims being reprocessed due to corrections to the 2010 Medicare Physician Fee Schedule and certain provisions of the Affordable Care Act of 2010. Due to the retroactive dates of these corrections and the resulting claim volume, CMS began reprocessing claims with dates of service between January 1, 2010 and May 31, 2010 in February of 2011. athenahealth wishes to clarify that the amount of client collections associated with this process during the first half of fiscal year 2011 was less than $5.0 million and that we expect the amount of client collections associated with this process during the second half of fiscal year 2011 to be similar in size. Overall, the CMS claims reprocessing is immaterial to athenahealth's fiscal year 2011 results.