PacifiCare profit doubles

Thursday, Feb. 3, 2005 | 11:15 a.m.

PacifiCare Health Systems Inc., a major insurer in Las Vegas, reported its fourth-quarter profit more than doubled.

The Cypress, Calif.-based company today reported its net income rose to $72 million, or 76 cents per share, compared with $31.5 million in the year-ago fourth quarter. The 2004 quarter included $2.6 million in post-tax costs related to refinancing the company's credit to acquire American Medical Security Group. The 2003 quarter included a $17.5 million post-tax cost related to the redemption of $175 million in debt.

Revenue incrased 13 percent to $3.2 billion in the fourth quarter, compared with $2.8 billion in the year-ago quarter. The increased revenue was a result of higher premiums and additional members from PacifiCare's core operations and the addition of AMS membership during the last 19 days of the quarter.

Commercial membership for the fourth quarter increased to nearly 3 million members nationally as of Dec. 31, compared with 2.2 million members as of Dec. 31, 2003.

In Nevada commercial membership increased to 40,900 members as of Dec. 31, compared with 33,300 a year ago. The membership growth included the addition of HCA Inc. hospital employees and North Vista Hospital, owned by IASIS Healthcare LLC.