Health Net 1998 Annual Report Download - page 20

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1 8 F O U N D ATIO N H EALT H SYST EMS, I N C.
The table below and the discussion that follows summarize the Company’s performance in the last three
fiscal years.
Year Ended December 31,
(Amounts in thousands) 1998 1997 1996
Total revenues $8,896,076 $7,235,019 $6,709,240
Expenses:
Health plan services expenses
(i)
6,547,747 4,912,532 4,598,074
Government contracts and specialty services expenses 1,064,722 1,002,076 995,820
Selling,general and administrative 1,042,556 851,826 859,996
Amortization and depreciation 128,093 98,353 112,916
Interest 92,159 63,555 45,372
Asset impairment, restructuring,merger,and othercharges
(i)
274,953 395,925 44,108
Total expenses 9,150,230 7,324,267 6,656,286
Income (loss) from continuing operations before income taxe s $(254,154) $ (89,248) $ 52,954
Overall medical care ratio 86.5% 83.1% 84.5%
Administrative expense ratio 12.4% 12.6% 13.6%
Health Plan Services Segment:
Health plan premiums $7,440,981 $5,829,444 $5,395,125
Health plan medical care ratio 88.0% 84.3% 85.2%
Health plan premiums per member per month $ 143.43 $ 137.96 $ 135.17
Health plan services per member per month $ 126.24 $ 116.26 $ 115.20
G o v e rnment Contr acts / Specialty Services Segment:
Government contracts and specialty services revenues $1,356,054 $1,291,275 $1,225,723
Government contracts and specialty services
expenses medical care ratio 78.5% 77.6% 81.2%
(i) 1998 Charges of $275.0 million are included in asset impairment, restructuring,merger and
other charges and $135.9 million are included primarily in health plan services expenses.
E n rollment I nform a t i o n
Year Ended December 31, Percent Percent
(Amounts in thousands) 1998 1997 Change 1996 Change
Health Plan Services:
Commercial 3,287 3,522 (6.7)% 2,774 27.0%
Medicare Risk 326 308 5.8% 237 30.0%
Medicaid 586 442 32.6 % 315 40.3%
4,199 4,272 (1.7)% 3,326 28.4%
Government Contracts:
CHAMPUS PPO and Indemnity 784 1,090 (28.1)% 1,035 5.3%
CHAMPUS HMO 783 801 (2.2)% 543 47.5%
1,567 1,891 (17.1)% 1,578 19.8%