Health Net Posts $86 Million Fourth Quarter Loss

Health Net Inc. reported a 2004 fourth quarter net loss of $86 million, or $0.77 per diluted share compared with earnings of $89 million or $0.77 per diluted share in the previous year. The company included several special charges during the fourth quarter, including $169 million to pay for old settlements, which totaled $252 million. In the past year, Health Net has had a difficult time meeting its financial expectations, but Jay Geller, president and chief executive officer of Health Net, said in a company release that better things are in store for the company. “In completing our review, we decided to address issues that restrained our performance in 2004 and put them in the past. We believe that pursuing a resolution of the provider matters, including the completion of contract revisions, will assure ongoing network stability,” Gellert said. “As a result of our ongoing pricing discipline, we believe Health Net will be in a better position to achieve consistent and predictable performance in 2005.”