Sales in the latest quarter for CorVel Corporation (CRVL), a provider of medical cost management and quality of care services, increased 12.8%. However, the company’s Network solutions services revenues— which accounted for 34.8% of total sales— grew significantly faster at 16.7%.

While CorVel attributed t”most of the increase” to existing customers, the company inserted new language in its latest quarterly report indicating it has begin recognizing revenue more aggressively than in prior periods:

“...we have modified the work-in-process for our post pay commercial health product to more accurately reflect the percentage of work completed earlier in the review cycle based on actual experience, which benefited the December quarter results within network solutions.”

CorVel provided no additional detail about the modification or explain why the previous method was deficient.

The company did not immediately respond when DuDil requested it quantify how much revenue was recognized in the latest quarter as a result of the work-in-progress modification.