PacifiCare’s 3rd-Quarter Profits Up 69%

PacifiCare Health Systems Inc., one of the nation’s fastest-growing health maintenance organizations, on Monday reported a 69% jump in third-quarter earnings to $8.2 million, from $4.9 million a year earlier.

Terry Hartshorn, president and chief executive, attributed the improved earnings to improved billing and collection procedures and a onetime payment of approximately $2 million for Medicare premiums that were not previously paid by the federal government.

Hartshorn added, however, that the Cypress-based HMO continued to see lower-than-average hospital use during the quarter.

Hartshorn said he is optimistic about PacifiCare’s short-term outlook. The HMO is expanding into Northern California to make its services available statewide, he said, and recently implemented a Medicare prescription drug program in San Diego to provide additional benefits to its members in that area.

The company’s earnings for the quarter ended June 30 amounted to 69 cents a share, compared to 41 cents a share for the year-earlier period. Revenue rose 27% to $318.8 million from $251.9 million during the same period last year.

Nine-month earnings were $17.8 million, or $1.50 a share, compared to $11.7 million, or 99 cents a share, a year earlier. Revenue was $900.1 million, up 28% from $703 million a year earlier.

PacifiCare stock closed Monday at $40.75 a share, up 25 cents in over-the-counter trading.