MAMSI profit up 54% in 2nd quarter

August 08, 2002|By M. William Salganik | M. William Salganik,SUN STAFF

Mid Atlantic Medical Services Inc. said yesterday that it earned $18.4 million, or 44 cents per diluted share, in the second quarter, topping analysts' consensus prediction of 39 cents.

The Rockville-based health insurer's earnings were up 54 percent in the quarter, which ended June 30, from $12 million, or 30 cents a share, in last year's second quarter.

The company attributed the improved profitability to membership growth and increases in premiums.

Membership was almost 2 million, 8.9 percent more than in the year-earlier quarter. The bulk of the membership growth was in health maintenance organizations and other commercial products, which produce higher revenue and margin than do preferred provider organization memberships. Premiums per member per month increased 9.7 percent.

More members paying higher premiums drove up revenue. MAMSI collected $575.3 million in last year's quarter.

Premiums increased slightly faster than medical costs, which were up 9.1 percent on a per-member-per-month basis.

MAMSI operates in Maryland, Virginia, North Carolina, Pennsylvania, West Virginia, Delaware and the District of Columbia. Its HMOs are M.D. IPA and Optimum Choice. Alliance is its PPO.

MAMSI shares ended the day at $31.25, up 25 cents.

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