A.M. Best Assigns Initial Rating to Network Health Plan of Wisconsin and Its Subsidiary.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--June 13, 2002 A.M. Best Co. has assigned an initial financial strength rating of B++ (Very Good) to Network Health Plan of Wisconsin (NHP NHP Non-Human Primate NHP Natural Health Product NHP Nevada Highway Patrol NHP National Historic Park NHP Nottingham Health Profile NHP National Health Plan NHP Nursing Home Placement NHP Nominal Horsepower NHP Not-Hot Plug (server) ), and its subsidiary, Network Health Insurance Corp. (NHIC NHIC National Health Information Center NHIC National Heritage Insurance Company NHIC New Haven Improvisers Collective (New Haven, CT) NHIC National Health Information Clearinghouse ), both of Menasha, Wisconsin Menasha is a city located in the U.S. state of Wisconsin. The population was 16,331 at the 2000 census. The city is located mostly within the Town of Menasha in Winnebago County. A portion is within the Town of Harrison in Calumet County. . The rating of NHP reflects improved business fundamentals business fundamentals The general background within which an economy operates including earnings, sales, wage rates, taxes, and inflation. Improving business fundamentals are generally viewed as bullish for stocks, although stock prices at any given point , market presence and the support of its parent organization, Affinity Health System (AHS AHS Assistant House Surgeon. ). Offsetting factors include unfavorable operating performance and limited operating area. NHP recorded a net loss of $2.2 million for the year-ended December 31, 2001, an improvement compared to a loss of $7.8 million during 2000. In addition, NHP recorded a net gain of $1.3 million for the first three months of the calendar year 2002. The company's recognized fundamental profitability drivers are stable membership, administrative expenses and improving medical loss ratio, which have resulted in improvements. Although NHP's performance strained capital, AHS supported the health plan with capital of $27.7 million, which enabled NHP to strengthen its capital position to $18.9 million during 2001. NHP continues to maintain market share in commercial business within core operating areas with 41% of the managed care population. A.M. Best believes the support of a strong provider network gives NHP a competitive advantage in accessing health care providers and ultimately controlling medical costs. For the last three years, NHP has experienced underwriting losses reporting $2.5 million in 2001. NHP's service area is limited, currently offering commercial products in 11 of 71 counties in Wisconsin List of 72 counties in the U.S. state of Wisconsin: State Abbr. FIPS State Code State WI 55 Wisconsin FIPS County Code County Name (County Seat) 001 Adams County (Friendship) 003 Ashland County (Ashland) 005 Barron County (Barron) 007 Bayfield County (Washburn) , with a concentration of membership in Outagamie and Winnebago counties. Furthermore, it does not market products outside of AHS's service area. NHP markets health insurance products only and faces competition from other integrated delivery systems integrated delivery system Integrated provider Medical practice A coordinated health care system formed by physician groups and hospitals which ↑ efficiency and ↓ redundancy in providing health care; IDSs coordinate delivery of a broad range of health and larger multi-lined carriers. A.M. Best has assigned a stable outlook to both companies. A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com. |
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