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Sierra Reports Improved Second Quarter Results

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NU Online News Service, Aug. 7, 2:55 p.m. – Sierra Health Services Inc., Las Vegas, is reporting $2.8 million in net income for the second quarter on $364 million in revenue, up from a net loss of $207 million on $337 million in revenue for the second quarter of 2000.

Operating earnings for the managed care company increased to $9.7 million, from $8.7 million.

Operating results for the latest quarter exclude $5.5 million in unusual charges, including a $2.4 million loss on the sale of real estate in Arizona, and a $1.3 million fine in Texas.

Operating results for the comparable quarter in 2000 excluded $209 million in restructuring charges.

Insured major medical enrollment fell 13%, to 305,300, but total major medical enrollment, which includes members of self-funded employee health plans and a military health care program, held steady at 1.3 million.

The typical insured member generated $9 in net income and $1,193 in revenue for the quarter, up from $614 in net losses and $966 in revenue for the second quarter of 2000.

The performance of many Sierra operations has improved in recent months, but a Medicare plan in Dallas is doing so poorly that the company will have to raise rates or change the benefit structure, the company says.