Prudential Health Care

Aetna Inc. completed its purchase of Prudential Health Care to become the nation's largest health maintenance organization. The deal was consummated when New Jersey became the last state to approve the merger. As several states have done, New Jersey forced Aetna to meet several conditions, including promising to keep 90% of Prudential's doctors for the next three years. The American Medical Assn.

Aetna Inc., the biggest U.S. health insurer, said U.S. regulators are reviewing its acquisitions, including this year's $1-billion purchase of a Prudential Insurance Co. of America unit, to determine if it properly accounted for costs. The Securities and Exchange Commission review is the latest in a series of problems with the Prudential HealthCare acquisition, which took half a year to pass regulatory muster and is losing money at a rate equal to $175 million a year.

WellPoint Health Networks is mulling a possible acquisition of Prudential Insurance Co. of America's financially struggling health-care unit, but is balking at the price, sources said. WellPoint, a Woodland Hills-based managed-care company, so far has been unwilling to match Prudential's supposed asking price of about $1.6 billion, according to a person familiar with the situation. Because of that, Humana Inc., a Louisville, Ky.

Aetna Inc. completed its purchase of Prudential Health Care to become the nation's largest health maintenance organization. The deal was consummated when New Jersey became the last state to approve the merger. As several states have done, New Jersey forced Aetna to meet several conditions, including promising to keep 90% of Prudential's doctors for the next three years. The American Medical Assn.

Acting on an administrative recommendation, the City Council's Budget and Finance Committee approved a report Tuesday that rejects a tax rate reduction requested by several health maintenance organizations based in Los Angeles. It also approved a recommendation that a special tax code be created that would tax HMOs only on work done within the city limits.

City administrators have recommended against lowering tax rates for health maintenance organizations, dealing a potential financial blow to five HMOs that had sought tax breaks. The recommendation was made in a report, released late Friday to the City Council's Budget and Finance Committee, that was prepared by the city administrative officer, chief legislative analyst and city clerk.

Aetna Inc., the biggest U.S. health insurer, said U.S. regulators are reviewing its acquisitions, including this year's $1-billion purchase of a Prudential Insurance Co. of America unit, to determine if it properly accounted for costs. The Securities and Exchange Commission review is the latest in a series of problems with the Prudential HealthCare acquisition, which took half a year to pass regulatory muster and is losing money at a rate equal to $175 million a year.

Despite threatening to leave Los Angeles in a tax dispute two months ago, Prudential HealthCare instead has leased 300,000 square feet of office space near downtown for a regional customer service center that will employ 1,400 people. The deal, which Mayor Richard Riordan's aides say is the biggest infusion of jobs in the downtown area in a decade, was completed despite the firm's assertion that the city's business taxes are too high.

In an effort to consolidate some California operations, Prudential HealthCare said Friday that it will open a regional service center in the Los Angeles area that will employ about 1,400 people by early 1998. The health-care division of Prudential Insurance Co. of America, based in Roseland, N.J., said the center will handle customer relations, billing and claims services that are now divided among five California cities: San Diego, San Mateo, Simi Valley, Stockton and Woodland Hills.

* Sprint Corp. shareholders approved the long-distance phone company's plan to assume full ownership of its Sprint PCS and create a separate class of stock for the business. * Foundation Health Systems Inc. tapped Cora Tellez, president and chairwoman of Prudential Health Care Plan of California Inc., as chief executive and president of its HealthNet unit, effective on Monday. Tellez, 49, succeeds Arthur M. Southam, who resigned earlier in the week.

WellPoint Health Networks is mulling a possible acquisition of Prudential Insurance Co. of America's financially struggling health-care unit, but is balking at the price, sources said. WellPoint, a Woodland Hills-based managed-care company, so far has been unwilling to match Prudential's supposed asking price of about $1.6 billion, according to a person familiar with the situation. Because of that, Humana Inc., a Louisville, Ky.

Acting on an administrative recommendation, the City Council's Budget and Finance Committee approved a report Tuesday that rejects a tax rate reduction requested by several health maintenance organizations based in Los Angeles. It also approved a recommendation that a special tax code be created that would tax HMOs only on work done within the city limits.

City administrators have recommended against lowering tax rates for health maintenance organizations, dealing a potential financial blow to five HMOs that had sought tax breaks. The recommendation was made in a report, released late Friday to the City Council's Budget and Finance Committee, that was prepared by the city administrative officer, chief legislative analyst and city clerk.

Despite threatening to leave Los Angeles in a tax dispute two months ago, Prudential HealthCare instead has leased 300,000 square feet of office space near downtown for a regional customer service center that will employ 1,400 people. The deal, which Mayor Richard Riordan's aides say is the biggest infusion of jobs in the downtown area in a decade, was completed despite the firm's assertion that the city's business taxes are too high.

Health Care Property Investors Inc. said Thursday it agreed to buy 36 clinics and two undeveloped properties from Prudential Health Care Plan Inc. for about $86 million. The properties, in Georgia, North Carolina, Florida, Tennessee, Oklahoma, Ohio, Colorado and Texas, total 739,557 square feet and about seven acres of vacant land. The 36 clinics are leased to eight physician group practices.

Prudential HealthCare will place a new major health service center near downtown Los Angeles that will employ more than 1,400 people by the end of the year, company and city officials announced Friday. "This is the largest infusion of jobs in downtown Los Angeles in over 10 years," said Mayor Richard Riordan as he praised Prudential's decision at a City Hall news conference.