NU Online News Service, Nov. 9, 11:42 a.m. – Health Net Inc., Los Angeles, a managed care company, is reporting $2.3 million in net income for the third quarter on $2.3 billion in revenue, compared with $46 million in net income on $2.4 billion in revenue for the third quarter of 2000.
The latest earnings figures include $80 million in restructuring charges. The charges will cover the cost of eliminating 1,500 full-time jobs, disposing of computer systems, and making other changes to the structure of the company, Health Net says.
Excluding the restructuring charges, net income would have been $45 million.
Health Net, previously known as Foundation Health Systems Inc., once focused mainly on health maintenance organization plans. It says it is now trying to add more preferred provider and point-of-service products. The company is also trying to sell more coverage to individuals and small employer groups, and it is a major administrator for TRICARE, a federal health plan for veterans, military personnel and military dependents who seek care away from military facilities.