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PACIFICARE HEALTH SYSTEMS ANNOUNCES RECORD YEAR-END RESULTS

 CYPRESS, Calif., Nov. 16 /PRNewswire/ -- PacifiCare Health Systems Inc. (NASDAQ: PHSYA and PHSYB) announced today that total operating revenue, earnings and membership reached record levels in fiscal 1993.
 Operating revenue for the fiscal year ended Sept. 30, 1993, increased 32 percent to $2.2 billion compared to $1.7 billion for the prior year. Earnings for the fiscal year were $62.7 million, or $2.25 per share, versus $43.6 million, or $1.78 per share a year earlier. Total membership grew 15 percent to 1,097,067 at Sept. 30, 1993.
 "Fiscal 1993 has been a successful year for PacifiCare Health Systems, whose record performance was fueled by considerable membership growth," said Alan Hoops, president and chief executive officer. "Nearly 65,000 people joined our commercial HMOs this year. In addition, more than 75,000 Medicare beneficiaries chose our Secure Horizons Medicare risk programs -- a 36 percent increase over last year.
 "As expected, the ratio of total health care service expenses to premium revenue increased over the prior year due in part to increased hospital capitation and out-of-area emergency costs," Hoops continued. By comparison, overhead expenses as a percentage of operating revenue decreased by 1.0 percentage point due to the increase in operating revenue this year, and the inclusion of non-recurring acquisition- related expenses in the prior-year period. Our continued focus on administrative efficiency also contributed to the decrease.
 "Fiscal 1993 was also an exciting and eventful year for the company," declared Hoops. "During the year we launched three new specialty managed care companies, entered the Houston market and introduced a small group product in California. In addition, PacifiCare Health Systems received approval to enter the CHAMPUS market for the first time, reached the 1 million member mark and recently completed the California Dental Health Plan and Freedom Plan acquisitions."
 For the fourth quarter of fiscal 1993, the company's operating revenue rose 33 percent to $605 million compared to $455 million a year ago. Earnings for the quarter were $17.1 million, or $0.61 per share, versus $12.1 million, or $0.47 per share for the same period last year.
 PacifiCare Health Systems is one of the nation's leading managed care organizations. Primary operations include managed health care products for employer groups and Medicare beneficiaries in California, Oklahoma, Oregon, Texas and Washington serving more than 1 million members. Other specialty managed care operations include Medicare risk management services, pharmacy benefit management, military health care management, coordination of managed care products for multi-region employers, health and life insurance, behavioral health, workers' compensation and health promotion.
 PACIFICARE HEALTH SYSTEMS, INC.
 (Unaudited)
 Three months ended
 Income Statement Sept. 30,
 (In thousands except per share data) 1993 1992
 Premiums $600,258 $451,492
 Other income 5,221 3,077
 Total operating revenue 605,479 454,569
 Health care services:
 Medical services 239,391 188,755
 Hospital services 198,595 139,356
 Other services 58,979 46,207
 Total health care services 496,965 374,318
 Marketing, general & admin expenses 83,719 63,068
 Amortization of intangibles 742 658
 Operating income 24,053 16,525
 Interest income 6,478 4,821
 Interest and other expense (821) (630)
 Income before income taxes 29,710 20,716
 Provision for income taxes 12,599 8,576
 Net income $17,111 $12,140
 Weighted avg number of shares outstanding 27,897 25,805
 Earnings per share $0.61 $0.47
 Operating Statistics
 Medical loss ratio (health care services
 as a percentage of premium revenue):
 Consolidated 82.8 pct. 82.9 pct.
 Commercial 81.9 pct. 79.3 pct.
 Secure Horizons Medicare 83.6 pct. 86.7 pct.
 Marketing, general & admin expenses
 as a percentage of operating revenue 13.8 pct. 13.9 pct.
 Operating income as a percentage of
 operating revenue 4.0 pct. 3.6 pct.
 Year ended
 Income Statement Sept. 30,
 (In thousands except per share data) 1993 1992
 Premiums $2,200,150 $1,675,174
 Other income 20,923 11,140
 Total operating revenue 2,221,073 1,686,314
 Health care services:
 Medical services 867,157 675,607
 Hospital services 766,770 554,532
 Other services 216,542 163,506
 Total health care services 1,850,469 1,393,645
 Marketing, general & admin expenses 279,865 229,881
 Amortization of intangibles 3,495 2,239
 Operating income 87,244 60,549
 Interest income 23,459 17,725
 Interest and other expense (2,376) (3,422)
 Income before income taxes 108,327 74,852
 Provision for income taxes 45,631 31,262
 Net income $62,696 $43,590
 Weighted avg number of shares outstanding 27,847 24,509
 Earnings per share $2.25 $1.78
 Operating Statistics
 Medical loss ratio (health care services
 as a percentage of premium revenue):
 Consolidated 84.1 pct. 83.2 pct.
 Commercial 82.5 pct. 80.2 pct.
 Secure Horizons Medicare 85.6 pct. 86.6 pct.
 Marketing, general & admin expenses
 as a percentage of operating revenue 12.6 pct. 13.6 pct.
 Operating income as a percentage of
 operating revenue 3.9 pct. 3.6 pct.
 At Sept. 30, 1993
 Secure
 Membership Data Comm'l Horizons Total
 PacifiCare of California 575,538 228,930 804,468
 PacifiCare of Oklahoma 110,210 8,801 119,011
 PacifiCare of Oregon 65,007 29,168 94,175
 PacifiCare of Texas 56,163 23,250 79,413
 Total membership 806,918 290,149 1,097,067
 At Sept. 30, 1992
 Secure
 Membership Data Comm'l Horizons Total
 PacifiCare of California 532,265 169,025 701,290
 PacifiCare of Oklahoma 107,198 6,453 113,651
 PacifiCare of Oregon 57,390 23,805 81,195
 PacifiCare of Texas 45,251 14,827 60,078
 Total membership 742,104 214,110 956,214
 At At
 Balance Sheet Data (000s) 9/30/93 9/30/92
 Cash & equiv. and marketable
 securities $437,231 $272,135
 Medical claims and benefits payable $255,000 $208,000
 Total assets $693,646 $498,082
 Long-term debt $21,821 $18,488
 Total shareholders' equity $319,294 $198,884
 -0- 11/16/93
 /CONTACT: David K. Erickson, Investor Relations, 714-229-2636, or Ben Singer, Media Relations, 714-229-2825, both of PacifiCare Health Systems/
 (PHSYA PHSYB)


CO: PacifiCare Health Systems Inc. ST: California IN: HEA SU: ERN

JB-EH -- LA036 -- 5225 11/16/93 16:16 EST
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Date:Nov 16, 1993
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