MAXICARE: Returns To Profitability In 3Q
Los Angeles-based Maxicare Health Plans Inc. announced a return to profitable operations Monday, with third quarter profits of $634,000, or four cents per share. In the third quarter of 1997, the company posted a net loss of $18 million, or $1 per share, which included a $20 million charge to increase health care claims reserves for unanticipated health care costs. Revenues for the third quarter were $187.3 million, up 9.1% from $171.7 million a year ago. Membership grew 4% over the year to 538,000 members, fueling a $6.6 million increase in premium revenue from commercial plans and a $9.2 million increase for government plans. CEO Peter Ratican said, "Maxicare's return to profitability confirms that our strategic business plan and decision to focus on our core operations is starting to yield positive results." The company recently pulled its health plans out of Wisconsin and Illinois, choosing instead to concentrate on its businesses in California, Indiana and Louisiana (release, 11/2).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.