Health Net 2013 Annual Report Download - page 68
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66
business of future regulations and laws, including state laws, implementing the ACA. For additional information on the
ACA and related risks and uncertainties, see "Item 1A. Risk Factors".
Recent Developments
In January 2014, our wholly owned subsidiary, Health Net Community Solutions, Inc., entered into Amendment
No. 1 to the three-way contract executed in December 2013 with CMS and DHCS. Pursuant to the terms of the contract,
we will provide managed care services in both Los Angeles and San Diego Counties under the dual eligibles
demonstration portion of California's Coordinated Care Initiative, known as Cal MediConnect. Enrollment in our Cal
MediConnect program is scheduled to begin no earlier than April 1, 2014. See "—Results of Operations—Western
Region Operations Reportable Segment—California Coordinated Care Initiative" for more information.
2013 Financial Performance Summary
Health Net’s financial performance in 2013 is summarized as follows:
• In the year ended December 31, 2013, we reported net income of $170.1 million or $2.12 per diluted share
as compared to net income of $122.1 million or $1.47 per share, for the same period in 2012. In the year
ended December 31, 2013, we reported net income from continuing operations of $170.1 million or $2.12
per diluted share as compared to net income from continuing operations of $25.7 million or $0.31 per
diluted share, for the same period in 2012. On April 1, 2012, we completed the sale of our Medicare PDP
business to CVS Caremark. See Note 3 to our consolidated financial statements for more information. As a
result, we recorded a gain on sale of discontinued operation in the amount of $132.8 million pretax, or
$114.8 million after-tax, in the year ended December 31, 2012.
• Western Region Operations enrollment was approximately 2.4 million as of December 31, 2013, a decrease
of 4.1 percent compared with enrollment at December 31, 2012.
• Total revenues for the year ended December 31, 2013 decreased by approximately 2.1 percent to $11.1
billion from the same period in 2012.
• Western Region Operations segment pretax income increased to $207.5 million in 2013 compared to $29.1
million in 2012.
• Government Contracts segment pretax income decreased to $74.5 million in 2013 compared to $89.9
million in 2012.
• Net cash provided by operating activities totaled $95.8 million for the year ended December 31, 2013
compared to $32.5 million for the same period in 2012.