Western Health Plans reported a $1.45-million net...

Western Health Plans reported a $1.45-million net loss for the first quarter ended Sept. 30. The company reported a $1.23-million loss during the same quarter a year ago. Premium revenues for the quarter rose by 17% to $34.7 million, up from $29.6 million a year ago.

Earlier this month, Western reported a $13.9-million net loss for the fiscal year ended June 30. The health maintenance organization reported a $5.5-million net loss for the fiscal year ended June 30, 1987.

Western also reported that it had failed to act on a buyout proposal made by a San Diego-based hospital consortium which offered to acquire the financially troubled HMO’s assets for $21.1 million in cash and subordinated notes.

“The nature of the proposal and its ambiguity provided insufficient information for the board to determine the ultimate value to shareholders,” according to WHP Vice President Jack W. Savidge.

The offer was set to expire on Friday, but Western hoped to continue negotiations with the consortium, Savidge said.

“Many issues aren’t clearly defined defined in the proposal,” Savidge said. “As a result, we need time to meet with the consortium, work through these issues and determine if we have a possible plan to present to our shareholders for approval.”

Western has hired Shamrock Investments, a Los Angeles-based law firm, to seek out new capital for the HMO. Western is “actively pursuing various alternatives designed to strengthen the company financially,” Savidge said.