Coventry Health Care Completes Acquisition of Preferred Health Systems

Coventry Health Care, Inc. (NYSE:CVH – News) announced today that it has completed its previously announced acquisition of Preferred Health Systems, Inc. (“PHS”), a wholly-owned subsidiary of Via Christi Health System, Inc. The transaction is expected to be neutral to earnings for 2010 and financial terms were not disclosed.

Coventry Health Care (www.coventryhealthcare.com) is a diversified national managed healthcare company based in Bethesda, Maryland, operating health plans, insurance companies, network rental and workers�(TM) compensation services companies. Coventry provides a full range of risk and fee-based managed care products and services to a broad cross section of individuals, employer and government-funded groups, government agencies, and other insurance carriers and administrators. [Read the full article]

Exxon Mobil (XOM) shares were rising after the company both topped earnings expectations and reported a 23% drop in profit. Exxon said it earned $6.05 billion, or $1.27 a share, on revenue of $89.84 billion. That was down from the $7.82 billion or $1.54 a share a year prior but still better than the $1.19 a share analysts had predicted. The upstream segment contributed $5.8 billion to quarterly earnings, a bit ahead of a $5.6 billion estimate from Collins Stewart analyst Katherine Lucas Minyard. At the same time – and similar to the rest of the industry — the downstream segment suffered posting its first quarterly loss in eight years. Some upside came from Exxon’s corporate charges, which were $257 million during the fourth quarter better than estimates. [Read the full article]

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BETHESDA, Md. (AP) — Managed care company Coventry Health Care said Monday it completed its previously announced purchase of Preferred Health Systems Inc.

That gives the Bethesda, Md. insurer a much bigger presence in the Midwest, about 100,000 customers as of late last year.

Insurance companies have been under strain during the recession as the number of unemployed has cut into the rolls of people on employee health plans.

The acquisition of Preferred Health, of Wichita, Kan., was an indication to some analysts that Coventry was focusing more on the business it knows best. [Read the full article]

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