HMO profits skyrocket in first quarter of 2002

The nation's HMOs recorded an $868.1 million profit for the first three months of 2002, representing a 162 percent surge over the same period last year, according to Weiss Ratings Inc., the nation's leading independent provider of ratings and analyses of financial services company, stocks and mutual funds.

First-quarter industry profits were more widespread among the 441 HMOs studied by Weiss, with 73 percent reporting a profit during the period, compared to 60 percent of the plans reporting a profit during the same period in 2001. However, just 3 percent of the HMOs, or 14 companies, contributed $267 million, or about 50 percent, to the industry's first-quarter profit increase.

HMOs with the largest increase in net income were Kaiser Foundation Health Plan, Aetna Health, Blue Cross of California and California Physicians Service.