Profits are rising for managed care firms
July 1, 1999
Profits are rising for managed care firms
The financial picture for HMOs apparently is improving. Here’s a list of managed care organizations and the profits they have recently reported:
• RightCHOICE Managed Care Inc., St. Louis, reported first quarter net income of $4.7 million, a 385.5% improvement from the first quarter of 1998.
• Oakland, CA-based Kaiser Permanente posted net income of $61 million for the first quarter of 1999, including a one-time non-operating charge of $28 million for a change in accounting principles. This compares with a restated $54 million net loss in 1998’s first quarter.
• Santa Ana, CA-based PacifiCare reported $74 million in net income for the first quarter, a 79.2% improvement from the first quarter of 1998.
• Bethesda, MD-based Coventry Health Care reported $8.3 million in net income, a 76.6% increase from the prior-year period.
• Woodland Hills, CA-based Foundation Health reported a 59.9% increase in net income, to $41.9 million.
• Hartford, CT-based Aetna US Healthcare, which includes the managed care, indemnity, and group insurance products and services of Aetna Inc., reported $133.5 million in first-quarter operating income before Year 2000 costs, which was a 32.8% improvement over the prior-year period.
• HMO and indemnity operations of Philadelphia-based CIGNA Corp. reported operating income of $157 million in 1999’s first quarter, up 19.8% from the same period last year.
• UnitedHealth Group in Minnetonka, MN, reported $132 million in net income, the same as the prior-year period.
• Los Angeles-based Maxicare Health Plans reported a $7.7 million net loss, including $8.5 million in special charges, vs. a $2.7 million loss for the comparable quarter a year ago.