Fallon Community Health Plan Announces Q3 Earnings
Fallon Community Health Plan (FCHP) saw lower net income in the third quarter as higher demand for services increased costs for the Worcester-based health insurer.
Net income in the third quarter of 2012 was $4.4 million, with revenue totaling $289 million, according to a statement from FCHP. In the same quarter last year, net income was $12.2 million, with revenue of $290 million.
R. Scott Walker, executive vice president and chief financial officer for FCHP, said declining net income was in line with the company's expectations due to higher costs.
"As anticipated, utilization of health care services has returned to normal and historical levels, compared to the abnormally-low levels experienced in 2011, which we believe we due to a variety of factors, including product design and adoption trends, consumer confidence, and overall economic conditions.
"Additionally, we're making significant investments in infrastructure to support business initiatives and growth opportunities," Walker said in the statement.
Earnings were filed with the Massachusetts Division of Insurance, though a full report was not available Friday.
FCHP, which offers products for Medicare and Medicaid recipients, recently announced a statewide expansion of services for seniors, and formed Fallon Total Care, an integrated care organization, with Magellan Health Services.
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