A.M. Best Downgrades Rating of Paramount Care, Inc. and Paramount Care of Michigan.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--June 8, 2004 A.M. Best Co. has downgraded the financial strength rating to B+ (Very Good) from B++ (Very Good) of Paramount Care, Inc. (Maumee, OH) and Paramount Care of Michigan. The rating outlook is stable. This rating action reflects the significant decline in earnings of both companies in 2003 and the first quarter of 2004, along with the current level of statutory capital. The decline in earnings has resulted from the Medicaid business, which has turned unprofitable and from which Paramount Care is not expected to exit. A.M. Best is concerned that continued declines in operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. will impact the statutory capital levels, which are already somewhat thin. The B+ (Very Good) rating continues to rely on the implicit support of the parent, ProMedica Health Systems ProMedica Health System is a non-profit health care system with locations in northwest Ohio and southeast Michigan. The system includes a health education and research center, health maintenance organization, nursing homes, a local business network of private practices, , and the strategic role Paramount Care Inc plays as the managed care affiliate of the not-for-profit integrated health care integrated health care, n healthcare services combining the best of conventional and complementary health care. delivery system. The rating also relies on the good earnings generated by the commercial business, which have increased over the prior year. For current Best's Ratings Best's rating A rating A.M. Best Co. assigns to insurance companies based on the company's ability to meet its obligations to its policyholders. , independent data and analysis on more than 1,050 health companies and more than 130 HMO HMO health maintenance organization. HMO n. A corporation that is financed by insurance premiums and has member physicians and professional staff who provide curative and preventive medicine within certain financial, industry composites, please visit http://www.ambest.com/health/. |
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