HEALTH CARE : PacifiCare Loses Acquisition Bid for HEALS After Failing to Meet Deadline

PacifiCare Health Systems Inc., a cash-rich health maintenance organization eager to buy smaller companies in the same business, has stumbled twice on the acquisition trail.

Recently rebuffed in its attempt to buy bankrupt Maxicare Health Plans, Cypress-based PacifiCare also lost out on its bid to buy Oakland-based HEALS Health Plan, a financially troubled HMO that had been courting suitors for a year.

Michael Bhoostelaere, HEALS’ vice president of sales and marketing, said PacifiCare was too involved in negotiating with Maxicare to meet the timetables set by HEALS in its own sale negotiations. “It’s a shame,” he said.

“They felt they needed to move on at a different rate than we could,” acknowledged Wayne Lowell, PacifiCare’s chief financial officer. PacifiCare said earlier this month that it was seriously considering making an offer to acquire HEALS.

Bhoostelaere said HEALS has signed a letter of intent to negotiate a sales agreement with Qual-Med, an HMO based in Monte Vista, Colo., with about 150,000 members in five western states. He said the sale is expected to be completed by the end of summer.

Lowell said PacifiCare is disappointed with HEALS’ decision. But he added: “We think they are a fine organization and wish them a lot of luck in their endeavors.”

Not that PacifiCare has given up its quest. “We are still looking at a lot of things,” said Lowell, declining to be more specific.