Insurer overhauling operations

Wednesday, Feb. 7, 2001 | 11:35 a.m.

PacifiCare Health Systems, the No. 2 managed care company in Nevada, said its fourth-quarter profit fell 82 percent to $12 million or 35 cents per share from $66.4 million or $1.59 per share in the year-ago quarter. Rising medical costs were blamed.

The Santa Ana, Calif.-based company said it's moving away from being a health maintenance organization and instead will be a full-service health insurer and consumer services company.

It will offer preferred provider organizations (PPOs) that offer customers more choice than do health maintenance organizations (HMOs). PacifiCare is also developing consumer products like a health care credit card and a woman's health care network.

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