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$2.8-Million Loss Reported by Western Health Plans

February 24, 1989|GREG JOHNSON | Times Staff Writer

SAN DIEGO — Western Health Plans, which operates the Greater San Diego Health Plan, reported a $2.8-million net loss for the second quarter ended Dec. 31, 1988.

Western reported a $2.2-million net loss during the previous second quarter. The financially troubled operator of Health Maintenance Organizations has reported $24 million in losses during recent years.

Western reduced its most recent quarterly operating loss to $1.3 million, but it also absorbed a $1.5-million reserve taken in connection with the closing of Western's Health Maintenance Plan in the Riverside-Pomona area, Western Vice Chairman Jack Savidge said Thursday.

Western closed the Riverside-Pomona operation in order to concentrate on its "core San Diego market," Savidge said.

"Greater San Diego Health Plan is the cornerstone of WHP, and we are therefore concentrating all of our efforts here."

Western Health Plan of Southern California, which covers 16,000 customers in the Riverside-Pomona area, reported a loss for the six-month period ended Dec. 31, 1988. Western has about 200,000 members in San Diego County.

Western reported a $4.2-million net loss for the six-month period ended Dec. 31, compared to a $4.4-million net loss during the like period a year earlier.

Western's revenues for the second quarter rose to $35 million from $3.8 million the year before. Revenue for the six-month period rose to $70.8 million, up from $60.9 million a year earlier.

Western is continuing to negotiate "with various parties as to one or more forms of capital or subordinated debt infusion, or the sale of the company or specific assets," Savidge said.

"No definitive agreement has been reached."

Savidge earlier said that Western is negotiating with "investment institutions, insurance firms and consortia that have shown an interest in financial participation."

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