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PACIFICARE HEALTH SYSTEMS ANNOUNCES RECORD YEAR-END RESULTS

 PACIFICARE HEALTH SYSTEMS ANNOUNCES RECORD YEAR-END RESULTS
 CYPRESS, Calif., Dec. 2 /PRNewswire/ -- PacifiCare Health Systems, Inc. (NASDAQ:PHSY) announced today that operating revenue, earnings and membership reached record levels in fiscal 1991.
 Operating revenue for the fiscal year ended Sept. 30, 1991 increased 27% to $1,242,357,000 compared to $975,849,000 for the prior year. Earnings for the year were $25,702,000, or $2.20 per share, compared to earnings of $17,638,000, or $1.48 per share last year. Total membership increased 8% to 726,496 at Sept. 30, 1991.
 For the fourth quarter of fiscal 1991, operating revenue rose 25% to $342,252,000 compared to $272,815,000 a year earlier. Earnings for the quarter were $7,944,000, or $0.70 per share, versus $5,916,000, or $0.49 per share for the same period last year.
 "Fiscal 1991 was a very successful year for PacifiCare Health Systems -- a year which exceeded our expectations," said Terry Hartshorn, president and chief executive officer. "With the assistance and cooperation of our health care providers who manage the delivery of health care services, as well as favorable commercial premium increases and lower hospital expenses, we were able to greatly improve our operating margin. Slightly offsetting these gains was an increase in provider incentive payments and Medicare prescription drug costs.
 "The most significant achievement this past year was the successful management of our Medicare risk business under a modest 1% premium increase effective Jan. 1, 1991. Other notable events were the announcement of our merger with The Health Plan of America, a California-based statewide HMO, the acquisition of Execu-Fit Health Programs, the expansion of our Medicare program into the Tulsa market and the opening of several pharmacies in the San Diego area.
 Looking forward, we are confident in our adeptness to manage through challenging economic and market conditions," said Hartshorn, "and we believe in our ability to continue to grow and develop into a strong, well-positioned leader in the managed care industry."
 PacifiCare Health Systems owns and operates HMOs in California, Oklahoma, Oregon, Texas and Washington. The company also operates Secure Horizons, one of the nation's largest and fastest growing Medicare risk programs. Other operations include Columbia General, an insurance subsidiary licensed in 33 states; Pacific Review Services, an independent utilization review and case management company; and LifeLink, a chemical dependency and behavioral health company.
 PACIFICARE HEALTH SYSTEMS, INC.
 (Dollars in thousands except per share data)
 Three months ended
 Sept. 30
 Income Statement Data 1991 1990
 Premiums $338,915 $271,005
 Other income 3,337 1,810
 Total operating revenue 342,252 272,815
 Health care services 283,883 234,084
 Marketing, general and
 administrative expenses 47,357 32,702
 Operating income 11,012 6,029
 Interest income 4,186 3,701
 Gain on sale of
 Austin, Texas operations --- ---
 Interest expense and amort
 of intangibles (122) (125)
 Income before income taxes 15,076 9,605
 Provision for income taxes 7,132 3,689
 Net income $7,944 $5,916
 Earnings per share $0.70 $0.49
 Weighted average number
 of shares outstanding 11,756 11,926
 Operating Statistics
 Medical loss ratio
 (health care services
 as a percentage of premium revenue):
 Consolidated 83.7 pct 86.4 pct
 Commercial 81.7 pct 84.2 pct
 Secure Horizons Medicare 86.1 pct 88.9 pct
 Marketing, general and
 administrative expenses
 as a percentage of operating revenue 13.8 pct 12.0 pct
 Twelve months ended
 Sept. 30
 Income Statement Data: 1991 1990
 Premiums $1,232,784 $969,665
 Other income 9,573 6,184
 Total operating revenue 1,242,357 975,849
 Health care services 1,053,239 840,534
 Marketing, general and
 administrative expenses 158,985 120,581
 Operating income 30,133 14,734
 Interest income 14,960 13,577
 Gain on sale of Austin, Texas operations --- 1,750
 Interest expense
 and amort of intangibles (572) (623)
 Income before income taxes 44,521 29,438
 Provision for income taxes 18,819 11,800
 Net income $25,702 $17,638
 Earnings per share $2.20 $1.48
 Weighted average number
 of shares outstanding 11,673 11,885
 Operating Statistics:
 Medical loss ratio
 (health care services as a
 percentage of premium revenue):
 Consolidated 85.4 pct 86.7 pct
 Commercial 84.0 pct 86.0 pct
 Secure Horizons Medicare 87.1 pct 87.4 pct
 Marketing, general and
 administrative expenses
 as a percentage of operating revenue 12.8 pct 12.4 pct
 At Sept. 30, 1991
 Secure
 Membership Data Commercial Horizons Total
 PacifiCare of California 382,489 128,397 510,886
 PacifiCare of Oklahoma 98,315 1,559 99,874
 PacifiCare of Oregon 51,548 19,755 71,303
 PacifiCare of Texas 35,070 9,363 44,433
 Total membership 567,422 159,074 726,496
 At Sept. 30, 1990
 Secure
 Membership Data Commercial Horizons Total
 PacifiCare of California 376,187 104,510 480,697
 PacifiCare of Oklahoma 89,139 0 89,139
 PacifiCare of Oregon 45,477 17,430 62,907
 PacifiCare of Texas 35,126 5,490 40,616
 Total membership 545,929 127,430 673,359
 At Sept. 30,
 Balance Sheet Data 1991 1990
 Cash and marketable securities $205,846 $160,430
 Medical claims and benefits payable $175,700 $127,200
 Total assets $322,328 $231,608
 Long-term debt $2,280 $305
 Total shareholders' equity $99,678 $74,550
 -0- 12/02/91
 /CONTACT: Wayne Lowell, 714-952-1121, and David K. Erickson, 714-229-2636, both of Pacificare Health Systems/
 (PHSY) CO: PacifiCare Health Systems ST: California IN: HEA SU: ERN :: END


DM-EH -- LA005 -- 8486 12/02/91 16:09 EST
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Date:Dec 2, 1991
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