PacifiCare Divestiture: PacifiCare Health Systems Inc., while...

PacifiCare Divestiture: PacifiCare Health Systems Inc., while aggressively pursuing other health maintenance organizations, said Tuesday that it is selling a wholly owned subsidiary that reviews the use of hospitals.

The Cypress company said it has agreed to sell its Pacific Review Services to Newport Beach competitor Capp Care Inc., a managed-care company that offers services to self-insured employers, insurance companies and employer purchasing coalitions. Capp Care said its purchase of the utilization review company will make the firm more cost-efficient.

Utilization review is a managed-care technique in which firms attempt to shorten hospital stays and admissions by reviewing patient records. Terms of the agreement were not disclosed.