Canceled contract reduces Pa. firm's earnings

Article Abstract:

Genesis Health Ventures Inc. of Kenneth Square, PA, has reported that the revocation of its contract with NewCourtland Inc. to operate eight area nursing homes will reduce by about $1.2 million its earnings for 1998. The contract included the management of the Cobbs Creek Center in West Philadelphia, PA, the license of which was recently canceled and the facility ordered close by the Pennsylvania Department of Health due to serious and repeated quality-of-care problems. Genesis said the contract accounts for about $3.8 million of its revenues and $1.2 million, or 3 cents a share, in annual profits. NewCourtland is a nonprofit subsidiary of the Presbyterian Foundation for Philadelphia.

Comment:

Reports that the revocation of its NewCourtland Inc contract to operate 8 area nursing homes will reduce earnings by $1.2 mil

Contracts & orders received

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HMOs posted losses totaling $768 million last year, study finds

Article Abstract:

Health maintenance organizations (HMOs) in Philadelphia, PA, reported operating losses worth $768 million in 1997, according to a study by Weiss Ratings Inc. The study also indicated that 1997 was the third straight year of decreasing profits for HMOs in Pennsylvania. Weiss Ratings' study also found out that HMOs spent 90.1 cents on every premium dollar on medical expenses in 1997 as well as another 12.8 cents on administrative costs. HMOs are currently enhancing their investments in the stock market to compensate their operating losses.

Comment:

PA: Health maintenance orgs in Philadelphia report operating losses worth $768 mil in 1997, accdg to study by Weiss Ratings Inc

Health Maintenance Organizations, HMO Medical Centers

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Health-care firm looks to the long term

Article Abstract:

Genesis Health Ventures Inc. of Kennett Square, PA, is perceived by analysts to have a good chance at surviving for the long-term despite its currently dull performance in the investment market. JC Bradford & Co.'s Frank G. Morgan noted that Genesis is still a vital force in the industry despite the air of uncertainty surrounding it. The company is the fourth-biggest nursing home operator in the US with over 330 nursing homes that manage around 40,000 skilled nursing beds in 16 Eastern and Midwestern states.

Comment:

Is perceived by analysts to have a good chance at surviving for the long-term despite its currently dull performance in market

Strategy & planning

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