Health Net, Inc. Monday announced 2015 third quarter net income of $60.3 million, or 77 cents per diluted share, compared with a net loss of $8.9 million, or 11 cents per share, for the third quarter of 2014, and net income of $58.4 million, or 75 cents per diluted share, for the second quarter of 2015.
In the third quarter of 2015, Health Net incurred $21.7million of pretax expenses primarily as a result of information technology costs associated with the suspension of the previously announced transaction with a wholly owned subsidiary of Cognizant Technology Solutions Corp. In addition, this amount includes $5.2million of pretax expenses related to the company’s previously announced definitive merger agreement with Centene Corp.
Efforts toward the start of services pursuant to the Cognizant transaction were suspended in connection with Health Net’s July 2, 2015, announcement that it had entered into a definitive merger agreement with Centene.
The company’s Western Region Operations and Government Contracts segments produced combined net income of $75.1 million, or 96 cents per diluted share, in the third quarter of 2015 compared with $58.5million, or 72 cents per diluted share in the third quarter of 2014 and $74.6million, or 95 cents per diluted share, in the second quarter of 2015.
On July 2, 2015, Woodland Hills-based Health Net announced that it had entered into a definitive merger agreement with Centene under which Centene will acquire all of the issued and outstanding shares of Health Net, subject to the terms and conditions of the merger agreement.
—City News Service