Fallon Community Health Plan reports third quarter financials

Worcester, Mass., November 14, 2008―Fallon Community Health Plan (FCHP) today reported net income of $5.7 million on revenue of $265 million for the third quarter ending September 30, 2008. Net income includes investment income of $1.5 million and operating income of $4.2 million. For the same quarter last year FCHP posted net income of $2.8 million on revenue of $227.5 million. FCHP membership increased by 24,379 members to a total of 216,074 as of September 30, 2008, up from 191,695 for the same quarter last year. While reporting positive operating income for the third quarter of 2008, the company’s year-to-date results are showing an operating loss of $0.9 million.

FCHP President and CEO Eric H. Schultz attributed the company’s continued membership growth to several key factors.

“A comprehensive product portfolio, competitive pricing and a provider network that extends across the Commonwealth has solidified FCHP’s presence in the marketplace,” said Schultz.

Schultz added that FCHP’s third quarter performance is consistent with expectations, but the company’s attention remains keenly focused on the unprecedented financial turbulence facing both Massachusetts and the country.

“This uncertainty comes on the heels of other pressures – increasing unemployment levels and Massachusetts’ health care reform, which includes individual mandates and a broad subsidy component,“ said Schultz. “Despite these challenges, FCHP has not lost sight of our responsibility and commitment to maintain strong cost control measures – and to ensure that FCHP customers receive the greatest value for their premium.”

Recent achievements and news from Fallon Community Health Plan include:

  • Named the #1 Medicaid health plan in America in a 2008 joint ranking by U.S.News and World Report and the National Committee for Quality Assurance.
  • Expanded coverage into southeastern Massachusetts by signing contracts with several provider groups including Plymouth Medical Group, South Coast Physician Network, Morton Hospital and Jordan Physician Associates.
  • Expanded the provider network for its Medicare Advantage plan, called Fallon Senior Plan™, into Hampden County by adding Hampden County Physician Associates for a 1/1/09 effective date.
  • Expanded its Summit ElderCare® program with the opening of a second facility in Worcester (and fifth in the region) at 1369 Grafton St. Summit ElderCare is a Program of All-inclusive Care for the Elderly, or PACE, which provides prescription drugs, primary medical care, support services in the home, medical transportation, and adult day health services to address the complex health needs of adults aged 55 and older who are looking for an alternative to nursing home placement.

Lauren M. Petit
lauren.petit@fchp.org

About FCHP
Founded in 1977, Fallon Community Health Plan is a nationally recognized, not-for-profit health care services organization. From traditional health insurance products available throughout Massachusetts for all populations, to innovative health care programs and services for independent seniors, FCHP supports the diverse and changing needs of all those it serves. FCHP has consistently ranked among the nation’s top health plans, and is the only health plan in Massachusetts to have been awarded “Excellent” Accreditation by the National Committee for Quality Assurance for its HMO, Medicare Advantage and Medicaid products.

NCQA is a private, non-profit organization dedicated to improving health care quality.