COSTA MESA — US Facilities Corp., a medical insurance company specializing in stop-loss coverage, said Tuesday that it has formed a subsidiary in Illinois that will review medical bills to control medical costs.
Subsidiary US MedCare Review, based in Oakbrook, Ill., began operating on Monday, company spokesman Jose Velasco said. It was formed after the parent company bought "a substantial majority" of assets from CareMax Inc., also based in Oakbrook, he said.
Terms of the buyout were not available.
The new subsidiary, which uses a medical database and trained personnel to evaluate medical bills and diagnoses, will enable US Facilities to control rising health care costs, Velasco said.
Also Tuesday, US Facilities reported that its first-quarter earnings were up 13%. Profit for the first three months of 1992 was $1.47 million, compared to $1.67 million in the same period last year. Revenue was $19.26 million, up 20% from $15.94 million.
Earnings per share, however, fell to 28 cents a share for the latest period, down from 37 cents a share a year earlier. The company attributed the decline to a public stock offering in December. The sale of 1.66 million shares of common stock raised $17 million but diluted the value per share.
In Tuesday's trading on the over-the-counter market, US Facilities stock closed at $11.75 a share, down 75 cents.