HMOs Net Income Falls
LANSING — Priority Health, Blue Care Network and Grand Valley Health Plan all reported lower net income for the first quarter of 2007, compared to the same period last year, according to statements filed this month with the Michigan Office of Financial and Insurance Services.
Priority Health’s first quarter net income sank by about 45 percent from first quarter 2006. The Grand Rapids-based HMO recorded net income of $6.2 million during the first quarter, compared to last year’s $11.3 million. That reflects an underwriting gain of $2.74 million, a decline from 2006’s first quarter gain of $8.48 million.
Priority Health acquired Care Choices from Trinity Health on April 1, the first day of the second quarter. For the first quarter of 2007 — the last quarter of its independent existence — Care Choices reported a slight dip in net income, from $1.72 million to $1.7 million.
Blue Care Network, the HMO belonging to Blue Cross Blue Shield, posted a slide in net income to $551,390, compared to $6.6 million in the first quarter of 2006, reflecting an underwriting loss of nearly $5.7 million.