Profit falls for insurer

Tuesday, Aug. 10, 1999 | 12:10 p.m.

Sierra Health Services Inc. of Las Vegas, the largest health insurer in the state, reported a second quarter profit of $8.6 million or 32 cents per share, down from $12.6 million or 45 cents in the year-ago period.

Sierra said net income increased 6 percent over the year-ago quarter excluding non-recurring charges. The earnings beat analyst estimates of 31 cents per share. Revenue increased from $244.5 million to $315.8 million.

"Our operating margin improved to 5.4 percent from 5.1 percent in the first quarter due in part to our ability to manage pharmacy costs and improve bed days," Sierra Chairman and Chief Executive Officer Anthony M. Marlon said in a statement. "We have focused a significant amount of our time and medical management on controlling our pharmacy costs and have begun to realize the benefits of our efforts."

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