PACIFICARE: MAY EXIT FLORIDA MARKET
PacifiCare Health Systems Inc. may leave "the fiercelyThis is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
competitive Florida market" to concentrate on markets it would
gain in its expected $2.1 billion acquisition of the FHP
International Corp. (BLOOMBERG BUSINESS NEWS/INVESTOR'S BUSINESS
DAILY, 8/26). BLOOMBERG BUSINESS NEWS/NEW YORK TIMES reports
that Cypress, CA-based PacifiCare entered the Florida market two
years ago, but has continued to lose money. Florida is
PacifiCare's "only major East Coast operation." The deal with
FHP "would add Arizona, New Mexico, Nevada, Utah, Colorado,
Illinois, Indiana, Kentucky, Ohio and Guam" to PacifiCare's main
markets in California, Oregon, Washington, Oklahoma and Texas
(8/24). Ed Keaney, a Volpe Welty & Co. analyst, said, "Their
energy is better spent in a market that is less developed than
Florida" (BLOOMBERG BUSINESS NEWS/INVESTOR'S BUSINESS DAILY,
8/26).