Health Net 1999 Annual Report Download - page 10

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8 FOUNDATION HEALTH SYSTEMS, INC.
■Goodwill ■Stockholders’ equity
The New York metropolitan market possesses potential for
significant growth … for both commercial and Medicare products.
created an environment where health care costs
rose quickly.This was especially pronounced in
Medicare. Intergroup has undergone a recent
management change. Mary Gilligan, formerly
with Health Net, has taken over the reins in
Arizona and they have a sound turnaround plan
in place for 2000.
OR EGO N
1999 was also a year of changes for our Oregon
plan, QualMed Plans for Health of O regon.
QualMed is reducing the number of counties it
services, choosing to concentrate on the urban
and suburban counties around Portland. A new
management team, led by Judi Irving, will focus
on improved profitability in 2000.
Eastern Division
TR I-STAT E REGION
1999 was an extremely successful year in the
tri-state region. Physicians Health Services (PHS),
which does business as Physicians Health Plans,
accomplished a great deal. PHS consolidated its
operations in the area and went from a pre-tax
loss to hitting their pre-tax profit target for the
year – another significant turnaround.
PHS health plans in Connecticut, New Jersey
and New York comprise the third-largest managed
care organization in the New York metropolitan
area. Enrollment was essentially flat, as Medicare
enrollment declined from market exits and PHS
held the line on commercial pricing.We believe
that 2000 will show renewed enrollment growth.
PHS continues to enjoy success in its joint venture
with The Guardian Life Insurance Company for
the small group market. In other market segments,
PHS’ broad provider network continues to attract
new customers.
The new management team led by Karen
Coughlin was very focused all year on a broad
range of medical management initiatives.These
bore fruit in 1999 and their implementation will
continue into 2000.These initiatives are aimed at
reducing unnecessary utilization and creating
greater efficiencies among physicians, hospitals
and other health care providers.