BUSINESSNews in brief - March 20, 2006Aetna buys disability company - Tenet's losses fall - MedCath names new CEO Aetna buys disability companyAetna is expanding its integrated health and disability coverage by acquiring Plantation, Fla.-based Broadspire, a provider of disability and casualty claim management services, for about $160 million. Broadspire is a contractor that handles short-term and long-term disability and leave management for employers. The acquisition nearly doubles Aetna's disability membership. Aetna said it will pay for the transaction from existing cash and expects the deal to close during spring 2006. Tenet's losses fallHospital operator Tenet Healthcare Corp. isn't losing as much money as it used to, but it's still suffering from bad debt and declining patient volumes, according to its latest earnings report. The Dallas-based company posted a loss of $286 million, or 61 cents per share, for the fourth quarter of 2005 compared with a net loss of $2.19 billion, or $4.68 per share, for the same period a year earlier. Large restructuring charges contributed to the 2004 total. Net operating revenue for the quarter was $2.3 billion, down from $2.4 billion in the fourth quarter of 2004. Trevor Fetter, Tenet's president and chief executive, said in a written statement that the company had made strides in its pricing and cost-control endeavors but suffered from the continuing decline of patient volumes and "stubbornly high" levels of bad debt expense. MedCath names new CEOA longtime hospital industry executive has been tapped to take over the helm of MedCath Corp., the company that develops heart hospitals with physicians. O. Edwin French, who had been serving as interim chief operating officer since October 2005, was elected president and chief executive officer, the Charlotte, N.C.-based company, as announced on Feb. 21. He is taking over for John Casey, who is retiring as chief executive but will keep his post as board chair. French has a long resume in the industry, recently serving as a division president for Universal Health Services Inc. and as president of French Healthcare Consulting Inc. Previously, French held executive positions with Physician Reliance Network, American Medical International, Samaritan Health Systems of Phoenix and Methodist Health Systems Inc., of Memphis, Tenn. MedCath owns and operates 12 hospitals in eight states in partnership with physicians. It also provides cardiovascular care services. Copyright 2006 American Medical Association. All rights reserved. |
Feature articlesHealth reform review The Massachusetts experience Litigation stress Being sued is personal as well as professional Comprehensive coverage
Most-viewedNov. 23 issueAMA meeting: Delegate vote refines AMA stance on system reform Liability premiums stay stable, but insurers warn this might not last Columns and series
From the vault: 5 years agoState tort reform ballot wins set stage for further battles Nov. 22, 2004 
|
