Coventry Health Care, Inc. (NYSE:CVH) today reported consolidated operating results for the quarter ended June 30, 2010. Operating revenues totaled $2.9 billion for the quarter with net earnings of $1.0 million, or $0.01 earnings per diluted share (EPS). These results include a favorable impact from the Medicare Advantage Private Fee-for-Service (MA-PFFS) product of $0.18 EPS and an unfavorable impact related to the previously announced provider class action litigation in Louisiana of $1.18 EPS. Excluding the impact of MA-PFFS results and the provider class action charge, earnings for the quarter were $149.2 million, or $1.01 EPS. Additionally, the Company has increased guidance for full year 2010 as detailed on page 3.
“Our diversified portfolio of risk and fee-based businesses combined with a relentless emphasis on driving a low cost structure throughout the organization positions us well for continued success in the long term.”
"The outstanding second quarter fundamentals that Coventry reported today are a result of the sharper focus and execution that have returned to the organization with all seven of our core businesses performing at or above expectations," said Allen F. Wise, chairman and chief executive officer of Coventry. "Our diversified portfolio of risk and fee-based businesses combined with a relentless emphasis on driving a low cost structure throughout the organization positions us well for continued success in the long term."
Consolidated Highlights
- Commercial risk membership of 1,522,000, an organic increase of 21,000 members sequentially
- Sequential membership growth in Medicare Advantage Coordinated Care Plans (MA-CCP), Medicare Part D, and Medicaid
- Announced an agreement to acquire Mercy Health Plans, a diversified health plan with approximately 180,000 members throughout Missouri and northwest Arkansas
- GAAP cash flows from operations were $120.9 million
- Approximately $670 million of deployable free cash at the parent at quarter-end
Selected Second Quarter 2010 Highlights