Health Net Inc. reported a negative net income shift from 2007 to 2008. The managed health care company’s adjusted net income for the full year of 2008 was $199.1 million, or $1.85 per diluted share, on revenues of $15.37 billion. In 2007, net income was $193.7 million, or $1.70 per diluted share, on revenues of $14.12 billion. Health Net’s 2008 fourth quarter net income was $35.5 million, or $0.34 per diluted share, on revenues of $3.87 billion compared to fourth quarter 2007, when net income was $116.9 million, or $1.04 per diluted share, on revenues of $3.58 billion. The fourth quarter 2008 results were affected by a $47.8 million pretax charge for severance and other expenses related to the company’s operations strategy, which is designed to reduce general and administrative expenses. “Last November, we outlined a plan to improve operational performance and increase shareholder value. The fourth quarter results were consistent with that plan and set a solid foundation for 2009,” said Jay Gellert, Health Net’s president and CEO. Health Net’s total net income was affected by a 1 percent decrease in members from 2007 as well. Last year, 34,000 fewer members were in Health Net’s enrollment plan. In 2009, Health Net expects full-year 2009 earnings per diluted share as high as $2.40. Shares in Health Net closed up at $16.75.
