Coventry Health Care Signs Definitive Agreement To Acquire First Health; Coventry Reports Third Quarter Earnings of $0.96 Per Diluted Share.BETHESDA Bethesda, city, United States Bethesda, uninc. city (1990 pop. 62,936), Montgomery co., W central Md., an affluent residential and commercial suburb of Washington, D.C. The area was settled in the late 17th cent. , Md. -- --Creates a leading health benefits company with size and scale for future growth --Leverages the complementary strengths of both companies --Broadens the product portfolio and further diversifies the client base --First Health shareholders will receive 0.1791 Coventry Coventry, city, England Coventry (kŏv`əntrē, kŭv`–), city (1991 pop. 318,718) and metropolitan district, central England. Coventry is an industrial center noted for its automobile production. shares and $9.375 in cash per First Health share --Immediately accretive, expected to add $0.30 - $0.36 to earnings per share in 2005 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
See: New York Stock Exchange : CVH CVH Helicopter Carrier CVH Compound-valve-angle Hemispherical Combustion-chamber (Ford cylinder head design and family of engines) CVH Compound Valve Angle Hemispheral Combustion Chamber CVH continuous venous hemodialysis ), and First Health Group Corp. (First Health) (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : FHCC FHCC Florida Health Care Coalition FHCC Florida Hurricane Crisis Coalition (Tallahassee, Florida) FHCC Fred Hutchinson Cancer Center (Seattle, Washington) FHCC Federal Health Care Center ) jointly announced today that they have signed a definitive agreement whereby Coventry will acquire all of the outstanding shares of common stock of First Health for a combination of shares of Coventry's common stock and cash. The combination creates a national health benefits company capable of providing health insurance and administrative services to a broad array of commercial and government clients. Under the terms of the agreement, and subject to regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. approvals, Coventry will pay 0.1791 shares of Coventry common stock and $9.375 in cash, per First Health share. Based on the NYSE closing price of Coventry's shares of $52.05, the indicated combined per share consideration for each outstanding share of First Health common stock amounts to $18.70 or a total indicated purchase price of approximately $1.8 billion. Coventry expects to finance the cash consideration with a combination of existing cash balances and borrowing under a new $950 million bank commitment. First Health, headquartered in Downers Grove, Illinois Downers Grove is an affluent suburb located 19 miles (31 km) west of Chicago in DuPage County, Illinois. The population was 48,724 at the 2000 census. , is a full service national health benefits services company serving the group health, workers' compensation workers' compensation, payment by employers for some part of the cost of injuries, or in some cases of occupational diseases, received by employees in the course of their work. and state public program markets. First Health offerings include a directly contracted national preferred provider organization pre·ferred provider organization n. Abbr. PPO A medical insurance plan in which members receive more coverage if they choose health care providers approved by or affiliated with the plan. , clinical programs, disease management, pharmacy benefit management A Pharmacy Benefit Manager (PBM) is a third party administrator of prescription drug programs. They are primarily responsible for processing and paying prescription drug claims. and other healthcare administrative products. First Health generated revenues of $890.9 million in 2003. "The combination of Coventry Health Care and First Health Group creates a truly national health benefits platform with the tools to serve our local, national and governmental clients. Coventry Health Care has built a very successful market position in 15 markets throughout the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . The acquisition of First Health enables us to extend our success far beyond our existing borders. This transforming acquisition positions Coventry to be a leader over the coming years as our clients seek an efficient solution to their health care cost challenges," said Allen Al·len , Edgar 1892-1943. American anatomist who is noted for his studies of hormones and for the discovery (1923) of estrogen. Wise, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Coventry. Dale Wolf, Executive Vice President and Chief Financial Officer, stated, "We look forward to combining the strengths of these two companies to better serve both companies' clients. First Health's national health administrative services business is highly complementary to our traditional strength in operating local health plans. We will now have the capability to target the most attractive opportunities in health insurance and administrative services from small group to national and governmental accounts nationwide." "This merger will provide great opportunities for all of our constituents including colleagues, clients and providers and enhance efforts to secure and service a growing client base." said Edward Edward killed his father at his mother’s instigation. [Br. Balladry: Edward in Benét, 302] See : Patricide L. Wristen, President and Chief Executive Officer of First Health. As a result of the transaction, the combined company will benefit from: --The size, scale and market access needed for leadership --A broad product portfolio creating diversified diversified (di·verˑ·s revenues and cash flow streams --A national presence combined with local network strength --Operational excellence through combined management expertise --Continued financial strength and flexibility --Operating synergies of $100 million by the end of fiscal 2007 Transaction Summary The transaction involves a merger of First Health into a Coventry acquisition subsidiary. Closing of the transaction, subject to regulatory approvals, approval of a majority of First Health's shareholders and other customary conditions is expected during the first quarter of 2005. The transaction is expected to be structured as a tax-free tax-free adj. Not subject to taxation; tax-exempt. tax-free Adjective not needing to have tax paid on it: a tax-free lump sum Adj. 1. reorganization. Following the transaction, First Health shareholders will have between 15.1% and 15.7% ownership on a diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis in the combined company. The merger agreement has been approved by the boards of directors of both companies. CIBC World Markets CIBC World Markets is the investment banking division of the Canadian Imperial Bank of Commerce. It helps governments, large companies, and other large institutions obtain capital and credit and is a primary dealer in U.S. Treasury securities. Corp. and Lehman Brothers Lehman Brothers Holdings Inc. (NYSE: LEH), founded in 1850, is a diversified, global financial services firm. It is a participant in investment banking, equity and fixed income sales, research and trading, investment management, private equity, and private banking. , Inc. acted as financial advisors and Bass, Berry Berry, former province, France Berry (bĕrē`), former province, central France. Bourges, the capital, and Châteauroux are the chief towns. , & Sims, PLC acted as legal counsel to Coventry. Profile of the Combined Company The combined company will have operations in 50 states in the United States, Puerto Rico Puerto Rico (pwār`tō rē`kō), island (2005 est. pop. 3,917,000), 3,508 sq mi (9,086 sq km), West Indies, c.1,000 mi (1,610 km) SE of Miami, Fla. and the District of Columbia District of Columbia, federal district (2000 pop. 572,059, a 5.7% decrease in population since the 1990 census), 69 sq mi (179 sq km), on the east bank of the Potomac River, coextensive with the city of Washington, D.C. (the capital of the United States). . The combined company expects to have pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma 2004 revenue of $6.2 billion, and EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become of $850.8 million. In addition, the combined company expects to achieve annual operating synergies of approximately $20-$30 million targeted for 2005, $40 -$60 million by the end of 2006, and more than $100 million by the end of 2007 (provider network savings, in-sourcing opportunities, implementation of best practices and elimination of duplicate DUPLICATE. The double of anything. 2. It is usually applied to agreements, letters, receipts, and the like, when two originals are made of either of them. Each copy has the same effect. corporate costs). The transaction is expected to be immediately accretive to Coventry's earnings per share, adding approximately $0.30 - $0.36 to Coventry's 2005 EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. guidance of $4.13 - $4.17 (excluding one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. transaction related adjustments and costs). Subsequent to closing, Coventry will have an anticipated debt to EBITDA ratio of 1.26x - 1.30x and a Debt/ Total Capitalization Total capitalization The total long-term debt and all types of equity of a company that constitutes its capital structure. total capitalization See capitalization. ratio of 33.8% - 34.7%. Coventry Third Quarter 2004 Results In addition to the First Health acquisition announcement, Coventry is also reporting its third quarter earnings and introducing guidance for 2005. Operating revenues operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. totaled $1.33 billion for the quarter, a 15.6% increase over the third quarter of 2003. Net earnings were $87.0 million, or $0.96 per diluted share, a 28.9% increase over net earnings for the third quarter of 2003 and 29.7% on a per diluted share basis. For the nine months ended September September: see month. 30, 2004, total revenues were $3.93 billion, a 18.6% increase over 2003, with net earnings of $2.71 per diluted share, a 36.2% increase over 2003. Financial Highlights --3rd Quarter Membership Up 4.0% over the prior year quarter --3rd Quarter Revenues Up 15.6% over the prior year quarter --3rd Quarter EPS Up 29.7% over the prior year quarter --3rd Quarter Operating Margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: of 9.6%, Up 70 basis points over the prior year quarter --3rd Quarter Annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. Return on Equity of 33.0% Q4 2004 Guidance --Total Revenues of $1.37 billion to $1.38 billion --EPS in the range of $0.95 to $0.97 2005 Guidance --Risk revenues in the range of $5.90 billion to $6.00 billion --Management services revenues of $100.0 million to $105.0 million --Medical loss ratio (MLR MLR mixed lymphocyte reaction. MLR Myocardial laser revascularization, see there %) of 80.5% to 81.5% of risk revenues --Selling, general, and administrative expenses (SG&A) of $660.0 million to $670.0 million --Depreciation and amortization of $20.0 million to $21.0 million --Investment income of $43.0 million to $45.0 million --Interest expense of $14.5 million to $14.8 million --Tax rate of 35.8% to 36.2% --Diluted share count of 90.5 million to 91.5 million shares --Earnings per share (EPS) on a diluted basis of $4.13 - $4.17 Mr. Wise will host a conference call at 10:30 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy on Thursday Thursday: see week. , October October: see month. 14, 2004. To listen to the call, dial (888) 203-7337, or for international callers, (719) 955-1566. Callers will be asked to identify themselves and their affiliations. The conference call will also be broadcast over the internet at www.cvty.com. Coventry asks participants on both the call and webcast to review and be familiar with its filings with the SEC. A replay of the call will be available for one week at (888) 203-1112, or for international callers, (719) 457-0820. The access code is 932607. Coventry Health Care is a managed health care company based in Bethesda, Maryland Bethesda is an urbanized, but unincorporated, area in southern Montgomery County, Maryland, just Northwest of Washington, D.C. It takes its name from a church located there, the Bethesda Presbyterian Church, built in 1820 and rebuilt in 1850, which in turn took its name from operating health plans, insurance companies, and provider networks under the names Coventry Health Care, Coventry Health and Life, Altius Health Plans, Carelink Health Plans, Group Health Plan, HealthAmerica, HealthAssurance, HealthCare USA, OmniCare Omnicare (NYSE: OCR) is a Fortune 500 company based in Covington, Kentucky. This company provides services in skilled nursing, assisted living, and other healthcare facilities in 47 U.S. states and Canada. External links
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 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. +Choice, and 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. to 3.1 million members in a broad cross section of employer and government-funded groups in 15 markets throughout the Midwest Midwest or Middle West, region of the United States centered on the western Great Lakes and the upper-middle Mississippi valley. It is a somewhat imprecise term that has been applied to the northern section of the land between the Appalachians , Mid-Atlantic Adj. 1. mid-Atlantic - of a region of the United States generally including Delaware; Maryland; Virginia; and usually New York; Pennsylvania; New Jersey; "mid-Atlantic states" middle Atlantic and Southeast United States. More information is available on the Internet at www.cvty.com. This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. 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 in the Company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December December: see month. 31, 2003 filed with the Securities and Exchange Commission. Additional Information About This Information This communication is not a solicitation solicitation In criminal law, the act of asking, inducing, or directing someone to commit a crime. The person soliciting another becomes an accomplice to the crime. The term also refers to the act of obtaining bribes, as well as to the crime of a prostitute who offers sexual of a proxy from any security holder of First Health. Coventry and First Health intend to file a registration statement on Form S-4 with the SEC in connection with the Merger. The Form S-4 will contain a prospectus, a proxy statement Proxy Statement A document containing the information that a company is required by the SEC to provide to shareholders so they can make informed decisions about matters that will be brought up at an annual stockholder meeting. and other documents for the stockholders' meeting of First Health at which time the proposed transaction will be considered. The Form S-4, proxy statement and prospectus will contain important information about Coventry, First Health, the Merger and related matters. Investors and stockholders should read the Form S-4, the proxy statement and prospectus and the other documents filed with the SEC in connection with the Merger carefully before they make any decision with respect to the Merger. The Form S-4, proxy statement and prospectus, and all other documents filed with the SEC in connection with the Merger will be available when filed free of charge at the SEC's web site, www.sec.gov See .gov and GovNet. (networking) gov - The top-level domain for US government bodies. . In addition, all documents filed with the SEC by Coventry in connection with the Merger will be made available to investors free of charge by writing to: Coventry Health Care, Inc., 6705 Rockledge Rockledge, city (1990 pop. 16,023), Brevard co., E Fla., on Indian River (a lagoon). Rockledge grew rapidly in the late 20th cent. Drive, Suite 900, Bethesda, Maryland 20817, Attn: Investor Relations Investor relations The process by which the corporation communicates with its investors. . All documents filed with the SEC by First Health in connection with the Merger will be made available to investors free of charge by writing to: First Health Group Corp., 3200 Highland Avenue, Downers Grove, Illinois 60515, Attn: Investor Relations. Coventry, First Health, their respective directors and executive officers may be deemed participants in the solicitation of proxies from First Health's stockholders. Information concerning Coventry's directors and certain executive officers and their direct and indirect interests in Coventry is contained in its proxy statement for its 2004 annual meeting of stockholders. Information concerning First Health's directors and certain executive officers and their direct and indirect interests in First Health is contained in its proxy statement for its 2004 annual meeting of stockholders. Additional information regarding the interests of these participants in the Merger will be available in the proxy statement regarding the Merger. Investors can obtain free copies of these documents from the SEC's website.
COVENTRY HEALTH CARE, INC.
MEMBERSHIP
(Amounts in thousands)
September 30, June 30, September 30,
2004 2004 2003
------------- ------------- -------------
Membership by Market:
Delaware 103 104 101
Georgia 76 80 77
Illinois - Central 87 86 75
Iowa 66 72 94
Kansas City 210 212 230
Louisiana 76 76 73
Nebraska 50 49 47
North Carolina 120 122 118
Pennsylvania 736 728 680
St. Louis 495 503 461
Utah 184 181 168
Virginia 166 163 154
West Virginia 77 82 75
------------- ------------- -------------
Total Membership 2,446 2,458 2,353
============= ============= =============
Membership by Product:
Risk membership:
Commercial 1,487 1,503 1,486
Medicare 68 68 64
Medicaid 333 334 315
------------- ------------- -------------
Total risk membership 1,888 1,905 1,865
Non-risk membership 558 553 488
------------- ------------- -------------
Total Membership 2,446 2,458 2,353
============= ============= =============
Network rental membership 574 681 719
COVENTRY HEALTH CARE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share data)
(unaudited)
Quarters Ended Nine Months Ended
September 30, September 30,
----------------------- -----------------------
2004 2003 2004 2003
----------- ----------- ----------- -----------
Operating revenues:
Managed care
premiums $1,302,053 $1,126,594 $3,843,529 $3,244,884
Management
services 27,763 23,395 84,260 66,953
----------- ----------- ----------- -----------
Total operating
revenues 1,329,816 1,149,989 3,927,789 3,311,837
----------- ----------- ----------- -----------
Operating expenses:
Medical costs 1,043,317 906,756 3,096,860 2,638,031
Selling, general
and
administrative 154,034 136,859 455,705 397,579
Depreciation and
amortization 4,259 4,280 12,921 13,424
----------- ----------- ----------- -----------
Total operating
expenses 1,201,610 1,047,895 3,565,486 3,049,034
----------- ----------- ----------- -----------
Operating earnings 128,206 102,094 362,303 262,803
Operating earnings
percentage of total
revenues 9.6% 8.9% 9.2% 7.9%
Senior notes interest
expense, net 3,572 4,126 10,719 11,470
Other income, net 10,809 9,211 32,581 31,115
----------- ----------- ----------- -----------
Earnings before income
taxes 135,443 107,179 384,165 282,448
Provision for income
taxes 48,421 39,656 138,814 101,991
----------- ----------- ----------- -----------
Net earnings $87,022 $67,523 $245,351 $180,457
=========== =========== =========== ===========
Net earnings per share,
basic $0.99 $0.76 $2.79 $2.05
Net earnings per share,
diluted $0.96 $0.74 $2.71 $1.99
Weighted average shares
outstanding, basic 88,344 88,595 87,954 87,824
Weighted average shares
outstanding, diluted 90,653 91,230 90,527 90,441
COVENTRY HEALTH CARE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
September 30, June 30, December 31,
2004 2004 2003
---------------------------------------
(unaudited) (unaudited)
Assets:
Current assets:
Cash and cash equivalents $398,853 $303,342 $253,331
Short-term investments 287,141 249,159 101,191
Accounts receivable, net 91,523 85,015 89,766
Other receivables, net 52,240 51,764 45,335
Deferred income taxes 35,698 37,686 36,255
Other current assets 8,670 9,916 8,089
---------------------------------------
Total current assets 874,125 736,882 533,967
Long-term investments 949,099 978,428 1,051,400
Property and equipment, net 29,917 28,900 33,085
Goodwill 281,328 281,328 281,183
Other intangible assets, net 26,154 26,780 27,447
Other long-term assets 57,171 58,853 54,654
---------------------------------------
Total assets $2,217,794 $2,111,171 $1,981,736
=======================================
Liabilities and Stockholders'
Equity:
Current liabilities:
Medical claims liabilities $597,510 $595,720 $537,340
Other medical liabilities 48,767 48,932 59,850
Accounts payable and other
accrued liabilities 198,139 199,917 183,781
Deferred revenue 72,720 71,244 73,909
---------------------------------------
Total current liabilities 917,136 915,813 854,880
Senior notes 170,500 170,500 170,500
Other long-term liabilities 26,065 21,651 27,358
---------------------------------------
Total liabilities 1,113,701 1,107,964 1,052,738
Stockholders' Equity:
Total stockholders' equity 1,104,093 1,003,207 928,998
---------------------------------------
Total liabilities and
stockholders' equity $2,217,794 $2,111,171 $1,981,736
=======================================
COVENTRY HEALTH CARE, INC.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Amounts in thousands)
(unaudited)
Quarter Ended Nine Months
Ended
September 30,2004 September 30, 2004
-------------------------------------
Cash flows from operating activities:
Net earnings $87,022 $245,351
Depreciation and amortization 4,259 12,921
Amortization of deferred
compensation 4,562 10,945
Changes in assets and
liabilities:
Accounts receivable, net (6,508) (1,757)
Medical claims liabilities 1,790 60,170
Other medical liabilities (165) (11,083)
Accounts payable and accrued
liabilities 5,194 28,187
Deferred revenue 1,476 (1,189)
Other operating activities 4,350 3,773
-------------------------------------
Net cash flows from
operating activities 101,980 347,318
-------------------------------------
Cash flows from investing activities:
Capital expenditures, net (4,646) (7,812)
Payments for investments, net
of sales and maturities (196) (105,160)
Payments for acquisitions, net
of cash acquired (4) (975)
-------------------------------------
Net cash flows from
investing activities (4,846) (113,947)
-------------------------------------
Cash flows from financing activities:
Proceeds from issuance of stock 3,438 8,886
Payments for repurchase of
stock (5,061) (96,602)
Payments for fractional
shares from stock split 0 (133)
-------------------------------------
Net cash flows from
financing activities (1,623) (87,849)
-------------------------------------
Net change in cash and cash
equivalents for current period 95,511 145,522
Cash and cash equivalents at
beginning of period 303,342 253,331
-------------------------------------
Cash and cash equivalents at end
of period $398,853 $398,853
=====================================
----------------------------------------------------------------------
Cash and Investments:
Cash and cash equivalents $398,853 $398,853
Short-term investments 287,141 287,141
Long-term investments 949,099 949,099
-------------------------------------
Total cash and investments $1,635,093 $1,635,093
=====================================
COVENTRY HEALTH CARE, INC. SELECTED OPERATING STATISTICS (Excluding charges)
Q3 2004 Q2 2004 Q1 2004
-------------------------------
Revenue PMPM
Commercial 228.36 224.56 222.08
Medicare 698.82 693.74 683.12
Medicaid 143.87 140.61 141.49
Management Fees 16.68 17.06 17.28
Medical PMPM
Commercial 182.12 177.19 176.36
Medicare 541.55 579.18 607.02
Medicaid 122.86 122.80 122.98
MLR %
Commercial 79.8% 78.9% 79.4%
Medicare 77.5% 83.5% 88.9%
Medicaid 85.4% 87.3% 86.9%
-------------------------------
Total 80.1% 80.3% 81.3%
SGA % of revenues 11.6% 11.6% 11.6%
SGA PMPM 21.05 20.86 20.54
Claims Statistics
Claims Inventory 143,645 161,212 142,080
Inventory Days on Hand 1.5 1.7 1.5
Total Medical Liabilities (000's) $646,277 $644,652 $645,017
Days in Claims Payable 52.69 52.64 52.39
Days in Other Medical Liabilities 4.30 4.32 4.94
Total Days in Medical Liabilities 56.99 56.96 57.33
Member Growth (a)
Same Store (12,000) 27,000 48,000
Acquisition 0 0 0
Total Q4 2003 Q3 2003 Total
2003 2002
-------- --------- --------- ---------
Revenue PMPM
Commercial 206.08 209.74 208.30 183.80
Medicare 629.52 632.22 630.56 593.29
Medicaid 139.69 138.11 141.33 137.54
Management Fees 17.86 18.38 17.37 17.71
Medical PMPM
Commercial 164.59 165.28 166.36 152.12
Medicare 527.84 556.98 507.59 509.60
Medicaid 122.25 123.58 119.46 115.58
MLR %
Commercial 79.9% 78.8% 79.9% 82.8%
Medicare 83.8% 88.1% 80.5% 85.9%
Medicaid 87.5% 89.5% 84.5% 84.0%
-------- --------- --------- ---------
Total 81.2% 80.9% 80.5% 83.3%
SGA % of revenues 12.0% 11.9% 11.9% 12.2%
SGA PMPM 20.60 20.69 20.51 19.56
Claims Statistics
Claims Inventory 128,556 156,773 146,842
Inventory Days on Hand 1.2 1.7 2.0
Total Medical Liabilities
(000's) $597,190 $610,033 $558,599
Days in Claims Payable 51.01 55.83 59.46
Days in Other Medical
Liabilities 5.68 6.06 7.33
Total Days in Medical
Liabilities 56.69 61.89 66.79
Member Growth (a)
Same Store 157,000 36,000 42,000 51,000
Acquisition 191,000 (6,000) 159,000 143,000
(a) Membership growth excludes network rental membership. |
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