Fallon Community Health Plan reports second quarter financials

Worcester, Mass., August 15, 2008—Fallon Community Health Plan (FCHP) today reported net income of $1.2 million on revenue of $250 million for the second quarter, ending June 30, 2008. Net income includes investment income of $4 million and an operating loss of $2.8 million. For the same quarter last year, FCHP posted a net loss of $1.2 million on revenue of $230 million. FCHP membership increased by 18,831 members to a total of 208,479 as of June 30, 2008, up from 189,648 for the same quarter last year.

“Our steady membership growth is a direct result of the excellent care, unique products and benefits, and outstanding service we deliver to our customers,” said Eric H. Schultz, President and CEO, FCHP. “We also see it as a clear indication that our belief in using provider networks built around community-based physician groups and hospitals resonates with the marketplace.”

FCHP has continued to expand its provider network’s geographic reach west to the New York border, as well as east and north into MetroWest, Middlesex County, the Merrimack Valley and the North Shore. FCHP has two HMO network product options – FCHP Select Care, which offers an extensive network of doctors and hospitals, and FCHP Direct Care, which offers a less extensive yet high-performing network at significant premium savings. Because of these two HMO network options, FCHP’s business customers can take advantage of a “triple-product” solution by offering the HMOs alongside FCHP’s PPO product, which features a network of more than 500,000 providers across the country. Through this approach, unique among Massachusetts health plans, employers can maximize their savings while providing more choice to their employees.

“Our continued provider network expansion, our line of innovative health insurance solutions, and our competitive pricing are giving people a good reason to take a second look and find even more value in our brand, and in what we bring to the marketplace,” said W. Patrick Hughes, Division President of Health Plan Operations at FCHP. “Our growth also has been fueled by a remarkable effort by employees across the organization to retain customers and bring in new sales. With this momentum, we continue to invest in initiatives that position us for future growth while ensuring we continue to offer great service to all of our customers today.”

In addition to offering traditional commercial HMO and PPO health insurance products, FCHP offers a Medicare Advantage product and participates in the state’s MassHealth, Commonwealth Care and Commonwealth Choice programs. FCHP also is the only health plan in the country that sponsors a Program of All-inclusive Care for the Elderly, called Summit ElderCare.^®

Christine Cassidy
christine.cassidy@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.