Parent Firm of 2 HMOs Reports Surge in Profits

Health Systems International Inc., the parent company of Woodland Hills-based Health Net and QualMed of Colorado, said its first-quarter profit surged 77% on a 17% increase in revenue compared with a year earlier.

For the three months ended March 31, the operator of the two health maintenance organizations reported a profit of $20.5 million, compared with a $11.6 million profit a year earlier. Revenue soared to $564.7 million, from $480.7 million.

Health Systems, created in January with the merger of Health Net and QualMed, said that on March 31 membership in its two HMOs totaled 1.41 million people, up 12% from a year earlier. Health Net and QualMed operate in six states.