Shares of Chicago-based Accretive Health, which provides medical billing, insurance verification and other services to healthcare providers, were up 6 percent at $11.51 in late afternoon trading. It rose to $11.76 earlier in the day.

In a 29-page response, the company said on Friday all its employees were instructed never to insist on clearing prior payments to patients for receiving treatment.

The company's shares tumbled as much as 29 percent on April 25 after the Attorney General alleged that Accretive Health placed debt collectors in emergency rooms and demanded payments from patients before they received treatment.

The company said it intends to vigorously defend itself in the pending litigation.

(Reporting by Balaji Sridharan in Bangalore)

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