Coventry Health Care Finalizes Settlement of All AHERF-related Disputes; Announces One-Time Gain of $6.3 Million.BETHESDA, Md.--(BUSINESS WIRE)--Nov. 10, 1999-- Coventry Health Care Coventry Health Care, Inc. (Coventry) (NYSE: CVH) is a managed health care company in the United States. On February 8th of 2007 Coventry agreed to acquire Concentra's Workers Compensation Managed Care Services Businesses. External links
The settlement resolves all liability issues surrounding AHERF's failure to fulfill its contractual obligations, concludes all AHERF-related litigation, and cements a new 3-year provider contract. As a result of the settlement, Coventry expects to release $6.3 million of the AHERF-related reserves, originally established in the second quarter of 1998. The gain will be reflected in fourth quarter and year-end 1999 results. "We are pleased to solidify our relationship with AGH and continue to include the entire West Penn system in our provider network," said Dale B. Wolf, chief financial officer of Coventry. "Our business in Western Pennsylvania is performing well, and, although AHERF's bankruptcy proceedings continue, this resolution marks the end of the AHERF chapter for us." Coventry Health Care is a managed health care company operating health plans under the names Principal Health Care, HealthAmerica, HealthAssurance, HealthCare USA, Group Health Plan, Southern Health and Carelink. The Company provides a full range of managed care products and services including 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, , PPO PPO abbr. preferred provider organization PPO Managed care Preferred provider organization, see there Infectious disease Pleuropneumonia-like organism, see there , POS (1) See point of sale and packet over SONET. (2) "Parent over shoulder." See digispeak. POS - point of sale , Medicare Risk and Medicaid to 1.4 million members in a broad cross section of employer and government-funded groups in 16 markets throughout the Midwest, Mid-Atlantic and Southeast United States. More information on Coventry is available on the Internet at http://www.cvty.com. This press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These statements relate to future events or future financial performance and may be significantly impacted by certain risks and uncertainties described herein and in the Company's Annual Report on Form 10-K for the year ended December 31, 1998 filed with the Securities and Exchange Commission. |
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