NU Online News Service, July 22, 2004, 6:05 p.m. EDT
Gains from a TriCare military health coverage contract helped increase second-quarter net income at Sierra Health Networks Inc., Las Vegas, Nev.[@@]
The company is reporting $38 million in net income for the quarter on $441 million on revenue, up from $21 million in net income on $370 million in revenue for the second quarter of 2003.
The company ended the quarter providing or managing health coverage for 1.2 million people, about as many as it covered a year earlier.
The company notes that results for the quarter include a $16 million gain resulting from change orders, bid price adjustments and other contractual settlements related to the TriCare contract. Under the contract, Sierra administers health coverage for 710,400 military dependents, military retirees and military personnel who live away from U.S. military health care facilities.
Sierra fought for years to hold on to the TriCare facility but lost out in the latest round of bidding. The TriCare unit will start to wind down its operations in September, the company says.