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INDUSTRY NOTES

October 01, 1987

Western Health Plans reported a $5.4-million loss and revenue that rose to $113 million from $89 million for the fiscal year ended June 30. The San Diego-based operator of health maintenance organizations reported a $740,000 loss for the previous year.

One-time charges generated by the closing of its year-old HMO in Reno accounted for most of the loss, according to Chairman Allan Goodman, who said in a prepared statement that the Reno operation was "suspended" because of slower than anticipated growth.

Western Health Plans also absorbed start-up expenses at its new Pomona/Riverside HMO and a new medical group management company in San Diego, according to Goodman.

The company's San Diego operations were profitable but "competitive pressures on premiums, and increases in health-care costs in the area held down margins," according to President Robert Erra.

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