COVENTRY CORPORATION REPORTS RECORD FIRST QUARTER RESULTS; EARNINGS INCREASE OF 35% OVER PRIOR YEAR.NASHVILLE, Tenn.--(BUSINESS WIRE)--May 4, 1995--Coventry Corporation (Nasdaq/NM:CVTY) reported record revenues and earnings for the first quarter ended March 31, 1995. For the first quarter ended March 31, 1995, net earnings increased 35.8% to $9.4 million, or $0.32 per share compared with $6.9 million, or $0.24 per share, for the first quarter of 1994. Revenues for the first quarter totaled $199.4 million, a 7.9% gain over the prior year's $184.8 million. 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, and at risk enrollment increased 11.1% while total enrollment increased 10.9% at March 31, 1995, compared with the prior year, including the pending acquisition of HealthCare USA. Philip Hertik, President and Chief Executive Officer, said, "Our performance in the first quarter of 1995 continues the positive momentum from the previous year, which was a period of remarkable achievement by our company. Our strong first quarter financial results were driven by medical cost control reflected in the medical loss ratio improving to 79.9% in the first quarter of 1995 from 81.5% in the first quarter of 1994." The Company recently announced that it would acquire HealthCare USA, a Medicaid Medicaid, national health insurance program in the United States for low-income persons; established in 1965 with passage of the Social Security Amendments and now run by the Centers for Medicare and Medicaid Services. HMO company based in Jacksonville, Florida “Jacksonville” redirects here. For other uses, see Jacksonville (disambiguation). Jacksonville is the largest city in the state of Florida and the county seat of Duval County. . Since that announcement, HealthCare USA has been reviewed by the Florida Agency for Health Care Administration, along with the 28 other Medicaid HMOs in Florida. The result was that HealthCare USA received the highest quality rating, 98 percent, and a 94 percent overall rating. Further, HealthCare USA was given the clearance to begin expansion in Florida in conjunction with the development of its commercial HMO membership. Also, HealthCare USA was one of seven plans selected by the Missouri Missouri, state, United States Missouri (mĭz  r`ē, –ə), one of the midwestern states of the United States. Division of Medical Services to deliver managed care services to more
than 150,000 Medicaid recipients in St. Louis and surrounding sur·round tr.v. sur·round·ed, sur·round·ing, sur·rounds 1. To extend on all sides of simultaneously; encircle. 2. To enclose or confine on all sides so as to bar escape or outside communication. n. counties. Yesterday, the Company announced that Mr. Michael F. Neidorff has joined Coventry as a corporate Vice President and President and Chief Executive Officer of Group Health Plan, the Company's managed care plan in St. Louis. Mr. Neidorff was Chief Executive Officer of United HealthCare's Missouri Health Plan operations, encompassing St. Louis-based Physician's Health Plan of Greater St. Louis Greater St. Louis is the informal name of the St. Louis Metropolitan Statistical Area, the 18th largest in the United States. Its population of 2,801,033 (as of 2007 according to the US Census Bureau) includes the independent City of St. Louis, St. , Inc. and GenCare Health Systems. Also, Ms. Nancy I. Lorenz has joined Coventry as Vice President, Government Programs with responsibility for developing a Medicare Medicare, national health insurance program in the United States for persons aged 65 and over and the disabled. It was established in 1965 with passage of the Social Security Amendments and is now run by the Centers for Medicare and Medicaid Services. risk product in all of the Company's markets. Ms. Lorenz was Director of Government Programs for Sanus Corporate Health Systems where she directed nationwide expansion of Medicare and Medicaid Medicare and Medicaid U.S. government programs in effect since 1966. Medicare covers most people 65 or older and those with long-term disabilities. Part A, a hospital insurance plan, also pays for home health visits and hospice care. risk products. Mr. Hertik added, "We are very pleased with our positioning for the remainder of 1995 and the future. We intend to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. the growth opportunities in our markets in commercial accounts and government programs. We will further our track record of successful hub and spoke Any architecture that uses a central connecting point. It is the same as a star topology in a network. A network hub is hardware that functions as a central hub to all nodes. See hub and full mesh.  expansion as well as the acquisition of excellent managed care
companies such as our Virginia operation and the HealthCare USA
transaction. We have been able to attract two excellent executives in
key positions to lead our St. Louis operation and to develop our
Medicare risk product. Additionally, we expect excellent results from
the recently announced acquisition of HealthCare USA, both in Florida
and throughout the existing markets, which have 1.2 million Medicaid
recipients and very low Medicaid managed care penetration rates."
Coventry Corporation, headquartered in Nashville, Tennessee “Nashville” redirects here. For other uses, see Nashville (disambiguation). Nashville is the capital and the second most populous city of the U.S. state of Tennessee, after Memphis. , is a managed health care company that provides a wide range of health benefits to a broad cross section of employer groups employer group Association of employers Managed care An entity with a current group benefits agreement in effect with a health plan to provide covered health care services to its employee-subscribers and eligible dependents. in Pennsylvania, Missouri, Illinois and Virginia. The Company operates from regional headquarters in Pittsburgh and Harrisburg, Pennsylvania This article is about the capital city of the Commonwealth of Pennsylvania. For other places named Harrisburg, see Harrisburg (disambiguation). Harrisburg is the capital of the Commonwealth of Pennsylvania, a state of the United States of America. , St. Louis, Missouri, and Richmond, Virginia Richmond IPA: [ɹɯʒmɐnɖ] is the capital of the Commonwealth of Virginia, in the United States. . -0-
COVENTRY CORPORATION
Financial Highlights
(In thousands, except per share and enrollment amounts)
Three Months Ended
March 31,
1995 1994 % Change
Operating revenues $ 199,417 $ 184,781 7.9% Operating earnings $ 15,588 $ 13,243 17.7% Earnings before income taxes and minority interest $ 15,949 $ 13,555 17.7% Net earnings $ 9,410 $ 6,927 35.8% Earnings per share $ 0.32 $ 0.24 33.3% Average shares outstanding 29,558 29,065 1.7%
March 31,
1995 1994 % Change
Enrollment by market: Western Pennsylvania 247,200 229,800 7.6% Central Pennsylvania 147,400 129,700 13.6% St. Louis 137,200 133,700 2.6% Richmond 50,700 42,700 18.7% Jacksonville 27,200 14,000 94.3%
Total 609,700 549,900 10.9%
CONTACT: Coventry Corporation, Nashville Richard H. Jones, 615/391-2440 |
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