Managed Care Report
Managed Care Report
• Harvard Pilgrim Health Care (Boston) has appointed Charles Baker CEO. Baker told the Boston Globe that he expects to deliver a turnaround plan for the financially troubled managed care company within 60 days. Baker also said he will fill the openings at Harvard Pilgrim for COO and CFO within two months.
• New York Health Plan (New York) and its owner and CEO, Jay Fabrikant, pleaded guilty last week to obtaining state Medicaid funds through false filings and agreed to repay $375,000, reported Newsday. Fabrikant and the company, Newsday reported, reached a plea bargain with the state attorney that doesn’t require jail time. Under the deal, Fabrikant admitted to one count of offering a false instrument for filing, and the firm pleaded guilty to one count of third-degree grand larceny, both felonies. State officials said Fabrikant’s false claim allowed New York Health Plan to keep funds that should have been spent on patient treatment.
• Express Scripts (St. Louis) plans to offer $200 million in unsecured senior notes, due in 2009, through a private placement to qualified institutional buyers. The notes will not be registered under the Securities Act and may not be offered or sold in the United States without registration or an applicable exemption from the registration requirements under the act.
• Magellan Health Services said last week it will move its headquarters from Columbia, MD, to Atlanta. The company already operates the largest of its three divisions, behavioral health, in Columbia, reported the Wall Street Journal. Also, the Journal reported, Magellan’s CEO and CFO already work in Columbia. The switch is expected to be completed by the end of September.
• Blue Cross and Blue Shield of Wisconsin (BCBSWI; Milwaukee) plans to purchase an additional 1.4 million shares of United Wisconsin Services to increase its stake to 52% from 38%. BCBSWI said it plans to begin purchasing the shares in the open market after it receives antitrust approval. The majority ownership will enable United Wisconsin’s Compcare HMO products to be marketed with the Blue Cross and Blue Shield trademark.
• Blue Cross and Blue Shield of North Carolina (BCBSNC; Chapel Hill, NC) reported revenues of more than $473 million for 1Q99 ended March 31. The company posted a net income of $1.6 million, compared to $20.3 million in 1Q98. The company’s enrollment reached about 1.8 million members. Revenues were up 12% and enrollment grew by about 18%. The increases were due to the company’s recent contract with the federal government to serve military families and retirees. "All key indicators show us on track to meet our goals for 1999," said CFO Dan Glaser.
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