NU Online News Service, Oct. 23, 2003, 11:37 a.m. EDT – The Iraq war helped Sierra Health Services Inc., Las Vegas, increase its third quarter net income 58%.
The managed care company is reporting $22 million in net income for the latest quarter on $389 million in revenue, up from $14 million in net income on $331 million in revenue for the third quarter of 2002.
One contributing factor was a decrease in the ratio of medical claims expenses to medical premiums. The medical expense ratio fell to 75.9%, from 79.3% for the third quarter of 2002. Many managed care companies have medical expense ratios over 80%.
Another factor was an increase in military contract revenue to $133 million, from $100 million.