PACIFICARE: TO INTEGRATE FHP OPERATIONS IN CALIFORNIA
Santa Ana, CA-based PacifiCare Health Systems Inc. hasThis is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
announced that it has "received regulatory approval to merge the
California operations of recently acquired FHP International
Corp. into those of PacifiCare," Wall Street Journal reports.
The combined plan will serve about 2.3 million members (8/4).
The units involved include FHP's commercial and Medicare risk
plans. FHP members will have access to PacifiCare's 20% larger
physician network reaching a broader geographic territory
(PacifiCare release, 8/1). Beginning January 1, members of FHP's
Senior Plan "will become members of PacifiCare's Secure Horizons
brand" (Journal, 8/4). FHP plans in Arizona, Colorado, Texas and
Utah have "already been renamed PacifiCare and Secure Horizons."
PacfiCare President and CEO Jon Wampler said, "We're pleased our
FHP members can now enjoy the enhanced services provided by
PacifiCare of California's innovative administration systems and
programs and our stronger member service capabilities"
(PacifiCare release, 8/1).
Difficulties in the integration of the two companies were
partly responsible for PacifiCare's earning shortfall in the
second quarter. PacifiCare's shares dropped 27%. Analysts
blamed the shortfall on difficulties in integrating the two
companies' computer systems, and differences in the two
companies' operating procedures (see AHL 6/30).