HEALTH NET EARNINGS UP QUARTER UPBEAT DESPITE $67 MILLION SETTLEMENT CHARGE.Byline: Brent Brent, outer borough (1991 pop. 226,100) of Greater London, SE England. The area is a rail and industrial center. Its manufactures include automobile parts, clocks and watches, and electrical equipment. Hopkins Staff Writer WOODLAND HILLS - Despite a $67 million charge related to lingering lin·ger v. lin·gered, lin·ger·ing, lin·gers v.intr. 1. To be slow in leaving, especially out of reluctance; tarry. See Synonyms at stay1. 2. legal expenses, Health Net Inc. posted improved earnings for the first quarter. After a rocky 2004, the managed-care company has been trying to reform its business model and clear up legal entanglements stemming from its payment practices for doctors and health care chains. The company wrote off $252 million in the fourth quarter, and on Tuesday it announced an additional $66.6 million in settlement costs and $1.4 million in severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when charges but still started fiscal 2005 on a positive note. ``When we came into this year, we wanted consistency, stability and predictability,'' the president and chief executive officer, Jay Gellert Jay Gellert (born 1956 in New York City, New York) is the current CEO and President of Health Net, Inc. , said during a conference call Tuesday. ``The first quarter's a good step toward meeting those goals.'' Revenues slipped slightly to $2.91 billion from $2.92 billion in the first quarter of 2004, which the company blamed on a 3.3 percent slide in commercial enrollment. Earnings improved, however, to $21.3 million, 19 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , from $15 million, 13 cents per share. Excluding the $67 million charge, Health Net would have earned 55 cents per share, beating Thomson First Call expectations by 2 cents per share. The second quarter looks slightly less promising, as the company announced it expects earnings per share between 50 cents and 55 cents per share, a cent below analyst estimates. For the full year, it projects earnings per share between $1.94 and $2.14, including the settlement charge. In putting the lawsuit lawsuit: see procedure; tort. to rest, Health Net cleared up a six-year legal cloud. Affecting more than 900,000 doctors nationwide, the agreement provides $20 million for their legal fees and $40 million in general settlement. Health Net also agreed to streamline its payment practices and disburse dis·burse tr.v. dis·bursed, dis·burs·ing, dis·burs·es To pay out, as from a fund; expend. See Synonyms at spend. [Obsolete French desbourser, from Old French desborser funds more promptly. ``This settlement is just the latest manifestation man·i·fes·ta·tion n. An indication of the existence, reality, or presence of something, especially an illness. manifestation (man´ifestā´sh of (Health Net's) commitment to be a reliable and trustworthy partner with our physician members,'' Dr. Jack Lewin, executive director of the California Medical Association, said in a printed statement. ``In so doing, Health Net is helping California physicians to focus more of their resources on patient care.'' After the release, Health Net shares declined $1.24 to close at $32.94. Brent Hopkins, (818) 713-3738 brent.hopkins(at)dailynews.com |
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