Coventry reports lower net earnings in second quarter

Coventry Health Care reported net earnings of $1 million for the second quarter, up from $67.7 million a year earlier.

It had $2.9 billion in revenue, down from $3.5 billion a year ago.

The results included a favorable impact from discontinuing the company's Medicare Advantage private fee for service product earlier this year and an unfavorable impact related to provider class action litigation in Louisiana, the company said. Earlier this month, Coventry announced that it would incur a $278 million charge to earnings in the second quarter.

Coventry Health Care of Kansas, which owns Preferred Health Systems, is a subsidiary of Coventry Health Care.

In a statement, Coventry chairman and CEO Allen Wise said, "The outstanding second quarter fundamentals that Coventry reported today are a result of the sharper focus and execution that have returned to the organization with all seven of our core businesses performing at or above expectations."

Coventry said that among the highlights of the second quarter was an agreement to acquire Mercy Health Plans, a diversified health plan with approximately 180,000 members in Missouri and northwest Arkansas. Coventry Health Care of Kansas, which covers Kansas and Missouri, likely will play a role in that acquisition.