Western Health Plans, which has been mired...
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Western Health Plans, which has been mired in red ink, on Thursday reported a $107,000 net profit for the third quarter ended March 31. The San Diego-based health maintenance organization reported a $557,000 net loss during the previous third quarter.
WHP reported a $4.3-million net loss for the nine-month period ended March 31. It reported a $191,000 net profit for the nine-month period a year ago.
The company linked the net profit to “the successful implementation of health care and administrative cost-reduction plans.”
WHP’s return to profitability was the “result of almost a year of work where we assessed the market conditions and trends, instituted cost-containment procedures and began to streamline our administrative functions,” Chairman Allan Goodman said.
Total expenses for the third quarter fell to $75.08 for each HMO member, down from $79.43 during the previous quarter.
Revenue rose to $36.4 million, up from $30.4 million during the like quarter a year ago. WHP linked the revenue increase to a 17% increase in premium revenues.
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