Managesd Care Report
• WellPoint Health Networks (Thousand Oaks, CA) posted a 1Q00 ended March 31 net income of $79.6 million, $1.23 per share, compared to $50.6 million, 74 cents per share, including a one-time charge of $20.6 million, in 1Q99. The company reported 1Q00 total revenues of $2.1 million, up from 1Q99 revenues of $1.8 million. Membership in WellPoint’s medical plans totaled 7.5 million at the end of 1Q00, the company said. At the end of 1Q99, WellPoint said, its membership was 6.9 million. In other news, WellPoint said last week it has chosen BMC Software Professional Services (Houston) to perform a HealthCheck for IMS to determine the state of WellPoint’s recovery practices and procedures. The HealthCheck has helped WellPoint achieve its goals of protecting its recovery assets and allowing application-specific recoveries while maximizing its return on investment for previously purchased BMC Software IMS utilities.
• OmniCare Health Plan of Michigan (Detroit) received a $7.7 million boost from United American Healthcare Corp., including $4 million in cash and $3.7 million in the form of a surplus note. United American manages OmniCare. The transaction is the latest step in a plan by United American to restore the HMO to full financial strength. OmniCare said the additional resources will enable it to pay physician claims still outstanding and put the company in a strong position going forward. In addition, the company, which had bought an imaging system to eliminate key punching, is investing in a new recordkeeping system that should be operational in September, the company said.
• The Health Care Financing Administration (Baltimore) has decided to end its Medicare contract with insurer American Health Care Providers (Chicago). That means an estimated 4,000 elderly people in Cook County, IL, will have to find a new health insurer, reported Best’s Insurance News. State regulators are trying to liquidate the struggling HMO, Best’s reported. The federal government contends that American Health Care does not have a large enough network of doctors and hospitals to give seniors adequate access to medical care. The contract expires today.
• United Wisconsin Services (Milwaukee) and Wheaton Franciscan Services, the parent organization of Covenant Health System (Milwaukee), have signed letters of intent with Family Health Plan Cooperative and Family Health Systems to acquire their insurance business and healthcare delivery system. Under the proposed agreement, United Wisconsin would aquire Family Health Plan’s insurance business, including its 80,000 members and all insurance products and operations. Covenant Health System would acquire Family Health Plan’s care delivery system and the Surgicenter of greater Milwaukee, an affiliate of Family Health Systems.
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