Write-offs cause loss

Thursday, Oct. 25, 2001 | 10:34 a.m.

One-time charges caused Sierra Health Services Inc. of Las Vegas to post a loss for the quarter ending Sept. 30.

Sierra Health, a health care services and insurance company, reported a loss of $7.6 million, or 27 cents per share. This compares to net income of $2.7 million, or 10 cents per share, in the year-ago quarter.

The loss was caused by $11.6 million in after-tax charges taken in the quarter. These charges, which were comprised of both cash and non-cash charges, related to the termination of Sierra's HMO operations in Texas. Without these charges, Sierra would have reported net income of $4 million, or 15 cents per share.

Revenues were down less than 1 percent to $376.3 million.

Sierra reported gains in Nevada during the quarter, as commercial membership in the state rose nearly 20 percent over the year-ago quarter. But gains in medical premiums and specialty product revenues were offset by a 16 percent decrease in military contract revenues.

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