Mid Atlantic Medical posts 84.4% rise in profit

February 17, 1994|By Patricia Meisol | Patricia Meisol,Sun Staff Writer

Mid Atlantic Medical Services Inc., the largest managed care company in Maryland, Virginia and Washington, yesterday reported an 84.4 percent increase in earnings to $24.8 million for the year ended Dec. 31.

The company attributed the increase to gains in enrollment as well as reducing expenses.

The Rockville-based company said enrollment of members grew by 22.5 percent to 950,000 last year. The increase includes a gain of 10,500 Maryland state workers who switched from higher-cost Blue Cross and Blue Shield plans, the company said.

The company's best known product is M.D. IPA, a health maintenance organization that consists of individual doctors who agree to work for a set fee.

Net income for the fourth quarter ended Dec. 31 rose 132.5 percent to $11.1 million. Revenues in the same period rose 9.3 percent to $165 million.

Revenues for the year ended Dec. 31 rose 11 percent to $647 million. Medical expenses increased 6.7 percent while administrative costs rose almost 24 percent.

"The fourth quarter was an absolute home-run. They surpassed everyone's estimate not by a penny or two but by 50 percent, capping a fantastic year," said George F. Shipp, analyst with Scott & Stringfellow in Richmond.

He said the company's movement from No. 5 in 1989 to No. 1 about 18 months ago made it a significant buyer in the region and allowed it to negotiate for better prices.

As of June 30, Mid Atlantic had 22.5 percent of HMO members in the tri-state region. The next highest was Kaiser Permanente Medical Care, with 15.5 percent, and Blue Cross HMOs, with 12.2 percent.

Mid Atlantic shares closed yesterday at $37.375, up 50 cents, in Nasdaq trading.

Mid Atlantic

Medical Services

.. .. .. .. .. .. .. .. .. ..Ticker .. .. .. .. ..Yesterday's

.. .. .. .. .. .. .. .. .. ..Symbol .. ..Cls... .. .. ...Chg.

.. .. .. .. .. .. .. .. .. ..MAMS .. .. .37 3/8 .. .. .. .. ...+ 1/2

Period ended

Dec. 31 .. .. .. .. .. .. ..4th qtr. .. .Year ago .. .. .Chg.

Revenue .. .. .. .. .. .. .$165,866 .. ..$151,734 .. ...+9.3%

Net Income .. .. .. .. .. ..$11,111 .. .. .$4,778 .. .+132.5%

Primary EPS* .. .. .. .. .. ..$0.49 .. .. ..$0.22 .. .+122.7%

.. .. .. .. .. .. .. .. .. ..12 mos. .. .Year ago .. .. .Chg.

Revenue .. .. .. .. .. .. ..$646,777 .. .$579,355 .. ..+11.6%

Net Income .. .. .. .. .. ...$24,833 .. ..$13,460 .. ...84.4%

Primary EPS* .. .. .. .. .. ...$1.10 .. .. .$0.63 .. ...74.6%

Figures in thousands (except per share data.)

Baltimore Sun Articles
|
|
|
Please note the green-lined linked article text has been applied commercially without any involvement from our newsroom editors, reporters or any other editorial staff.