Fallon Community Health Plan reports 2010 financial results
Worcester, Mass., March 1, 2011―Fallon Community Health Plan (FCHP) today reported a net loss of $8.8 million on revenue of $1.1 billion for the fiscal year that ended December 31, 2010, compared with a net loss of $29 million on revenue of $1.1 billion in 2009. The net loss for 2010 includes investment income of $19.7 million and an operating loss of $28.5 million. Membership was 212,850 as of December 31, 2010, compared with 228,002 ending December 31, 2009.
“Our results are consistent with our expectations and a reflection of our efforts to remain focused on meeting our business goals while being responsive to a dynamic health care environment and the needs of our customers,” said R. Scott Walker, FCHP Executive Vice President and Chief Financial Officer.
Walker also said the health plan continues to focus on its strong stewardship of its customers’ premium dollars, maintaining strong cost controls on administrative expenses and seeking greater efficiencies in the cost of delivering care through collaboration with provider partners and other key stakeholders.
“By staying focused on those areas we can directly influence, we’re ensuring that our customers receive the greatest value for their premium dollar,” added Walker. “We look forward to continuing to provide choices in the marketplace and be the innovative, responsive, affordable health plan in Massachusetts.”
For the fourth quarter of 2010, FCHP posted net income of $5.3 million, compared with a net loss of $12.8 million for the same quarter in 2009. Fourth quarter 2010 net income included investment income of $2.5 million and operating income of $2.8 million.
Some of FCHP’s major achievements during 2010 include:
- Being ranked, for the second consecutive year, as one of the country’s top 10 health plans—and the only health plan in America to achieve Honor Roll status in all three product categories (#8 in private, #3 in Medicare and #1 in Medicaid)—in a national ranking by the National Committee for Quality Assurance.
- Growth in Summit ElderCare®, FCHP’s Program of All-inclusive Care for the Elderly (PACE), so that it is now the largest PACE organization in New England.
- Enrolling members in NaviCare® HMO SNP, a Medicare Advantage plan and a Senior Care Options program. NaviCare supports the health care needs of those age 65 and over in Worcester County who are enrolled in MassHealth Standard. It combines in one package all Medicare and Medicaid benefits, as well as additional benefits and services designed to promote independence and quality of life.
- Continuing its strong tradition of supporting the communities it serves by sponsoring many community-based events and by contributing to dozens of initiatives aimed at improving the health and well-being of residents, including the distribution of a record $173,000—raised during its annual fundraiser—to more than 90 food pantries and hunger relief programs throughout the Commonwealth.
NCQA is a private, non-profit organization dedicated to improving health care quality.
Christine Cassidy
christine.cassidy@fchp.org
About Fallon Community Health Plan
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.