Fallon Community Health Plan reports first quarter financials
Worcester, Mass., May 15, 2008—Fallon Community Health Plan (FCHP) today reported net income of $1.1 million on revenue of $244 million for the first quarter, ending March 31, 2008. Net income includes investment income of $3.4 million and an operating loss of $2.3 million. For the same quarter last year, FCHP posted net income of $3.3 million on revenue of $226 million. Membership was 201,329 as of March 31, 2008, compared to 188,233 for the same quarter last year.
“Our first quarter financial performance is consistent with budgeted expectations,” said Eric H. Schultz, President and CEO, FCHP. “Our steady membership growth reflects the success of our efforts to have statewide network coverage supported by a comprehensive, innovative product portfolio. Employers as well as individuals purchasing insurance on their own are recognizing the value of all we have to offer.”
FCHP also remains vigilant in its efforts to deal with issues related to the cost of care. Efforts continue to be focused on appropriately managing medical costs while ensuring that members are receiving the right care at the right time and place. The health plan also continues to invest in its infrastructure to improve administrative efficiencies.
“From a cost perspective, Massachusetts is faced with a very challenging situation,” said Schultz. “At FCHP, we’re working to keep premium increases as low as possible, despite mounting pressures from underlying medical cost trends, particularly inpatient services and high-cost technologies.”
During the first quarter, FCHP received approval from the Division of Insurance to offer its FCHP Select Care HMO plan to employers and individuals in Berkshire County. This recent expansion completed the health plan’s western Massachusetts’ reach to the New York border. Berkshire County health care providers accepting FCHP insurance include Berkshire Health System (affiliated with Berkshire Medical Center in Pittsfield and Fairview Hospital in Great Barrington), North Adams Regional Hospital and Williamstown Medical Associates (affiliated with North Adams Regional Hospital).
Summit ElderCare®, an FCHP-sponsored Program of All-inclusive Care for the Elderly, or PACE, also expanded to open a second adult day health center in Charlton, Mass. The additional building is located on the campus of the Overlook Masonic Health System, which is also home to the first Summit ElderCare site in Charlton.
FCHP began the second quarter announcing a second addition to the health plan’s line of business as a provider of care. Through a joint venture with VNA Care Network & Hospice, FCHP acquired Home Staff, LLC, a home supportive agency with various locations in Massachusetts that provides a variety of in-home services.
Lauren M. Petit
lauren.petit@fchp.org
About FCHP
Founded in 1977, Fallon Community Health Plan provides health care services designed to meet the unique and changing needs of all we serve. FCHP is the only health plan in Massachusetts that is both an insurer and provider of care. Our product portfolio includes a variety of group and individual health plan options (HMO, POS, PPO, Medicaid and Medicare Advantage plans) featuring flexible and innovative benefit designs. We administer fully-insured and self-insured funding arrangements with customized services for employers. Our uniquely developed provider networks offer high-quality, cost-effective, coordinated care and give our members access to doctors and hospitals throughout Massachusetts. We also offer a broad spectrum of services and programs to ensure our members, at every stage of life, remain as healthy and productive as possible. FCHP is a provider of care through its Summit ElderCare® program, an advanced and completely integrated program that offers seniors and their caregivers an alternative to nursing home placement. Our continued commitment to deliver high-quality health care and exceptional customer service has earned FCHP consistent ratings as one of the nation’s top health plans, and in 2007, placed our Medicare and Medicaid health plans as the best in the nation. FCHP is the only health plan in Massachusetts to have been awarded “Excellent” Accreditation by the National Committee for Quality Assurance for our HMO, Medicare Advantage and Medicaid products.