Insurer cutting Las Vegas jobs

Tuesday, Aug. 8, 2000 | 10:55 a.m.

Sierra Health Services Inc. of Las Vegas reported a second-quarter loss of $207 million or $7.64 per share Monday, reflecting a charge of $209 million for restructuring -- mainly at its troubled Texas operations.

Net income for the quarter ending June 30 -- excluding charges -- was $2.4 million or 9 cents per share, meeting analyst expectations. The profit before charges compared to $8.6 million or 32 cents in the year-ago quarter.

Quarterly revenue of $337 million was up 6.7 percent for Sierra, the largest health insurer in Nevada.

"The company is making significant progress towards improving profitability," said Dr. Anthony Marlon, chairman and chief executive officer.

Besides cutting the Texas operation, Sierra said that through layoffs and attrition it will cut the workforce at its Las Vegas corporate offices. A worst-case scenario would see some 100 to 150 jobs eliminated in Las Vegas, where Sierra has a workforce of about 3,000 people, a spokesman said.

Sierra also wants to sell and leaseback its Las Vegas real estate, including office buildings and clinics. The sale could generate more than $100 million in cash, most of which will be used to pay down debt.