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EXHIBIT 99.3
PacifiCare
Health Systems
3120 LAKE CENTER DRIVE
SANTA ANA, CALIFORNIA 92704
TEL (714) 825-5200
NEWS RELEASE
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CONTACT: Marie K. Connell Susan Berkel
Public Relations Investor Relations
714/825-5121 714/825-5226
FOR IMMEDIATE RELEASE
PACIFICARE HEALTH SYSTEMS ANNOUNCES NEW CEO
ROBERT O'LEARY TO SUCCEED ALAN R. HOOPS AS PRESIDENT AND CEO
SANTA ANA, CA, JUNE 22, 2000 - PacifiCare Health Systems Inc. (Nasdaq:
PHSY) Chairman David A. Reed is announcing today that its board of directors has
approved the appointment of Robert W. O'Leary, 56, as president and chief
executive officer of the $10 billion managed health services company. The
announcement will be made at PacifiCare's annual shareholders meeting in Santa
Ana. O'Leary, who reached an agreement with PacifiCare on Monday, June 19, will
report to the company's Santa Ana offices to assume his responsibilities
full-time on Monday, July 17.
O'Leary replaces Alan R. Hoops, 52, who announced his plans to step
down as company president and CEO earlier this year. A 35-year veteran of the
health care industry, O'Leary was previously chairman of Premier Inc., a
nationwide alliance of hospitals and health care systems, representing one-third
of the United States health care market. It is based in San Diego. Hoops had
served as head of PacifiCare since April 1993. Upon his retirement, Hoops will
serve as a consultant to PacifiCare, assisting in the transition to new
leadership.
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PacifiCare New CEO & President
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"Rob is the ideal leader to take the helm at PacifiCare," said Reed.
"He has led both nonprofit and for-profit organizations and worked with doctors,
hospitals and medical suppliers. He is well-versed in every aspect of the health
care industry.
"O'Leary's experience with strategic planning, e-commerce, acquisitions
and mergers will provide valuable leadership, and we expect him to strengthen
PacifiCare's existing operations and develop new diversified ventures," Reed
added.
"PacifiCare is one of the most established companies in the health care
field, and it has exciting prospects for the future," O'Leary said. "It's
already number one in many markets and has established itself as the largest and
leading player in the Medicare+Choice market. I look forward to joining the
senior management team and moving the company forward as it defines the next
generation of health care in America."
"I have been very fortunate to lead PacifiCare during a time of
tremendous growth and change," said Hoops. "When I began thinking about my
retirement, my goal was to leave PacifiCare in good shape and allow the new
leadership to set a course that would further our success. I believe we have
done that, and Rob O'Leary is an excellent choice as my successor. Equally
important, Rob should fit well with the PacifiCare culture - a true asset of
this company. He is committed to our vision and values."
Prior to joining Premier Inc., O'Leary was chairman and chief executive
officer of American Medical International, Voluntary Hospitals Association Inc.
(VHA) and Orange County, California-based St. Joseph's Health System.
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PacifiCare New CEO & President
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O'Leary holds a juris doctor from Suffolk University Law School,
Boston, and received an honorary doctor of laws from the university in 1995. He
has a bachelor of science degree in public health from the University of
Massachusetts, Amherst, and a master's in public administration from the
Graduate School of Public Affairs, State University of New York, Albany.
The search for this position was conducted by New York-based TMP
Worldwide Executive Search, a worldwide leader in executive recruitment.
PacifiCare Health Systems Inc. is one of the nation's largest health
care services companies. Primary operations include managed care products for
employer groups and Medicare beneficiaries in nine states and Guam serving about
4 million members. Other specialty products and operations include behavioral
health services, life and health insurance, dental and vision services, pharmacy
benefit management and Medicare+Choice management services.
# # #
Some of the statements contained in this press release are not historical facts
and are forward-looking statements within the meaning of the Federal securities
laws, and may involve a number or risks and uncertainties. Forward-looking
statements include, but are not limited to our expectation that PacifiCare's
existing operations will strengthen and we will develop new diversified ventures
and our outlook on our future prospects. Important factors that could cause
results to differ materially from those expected by management include, but are
not limited to, the risk that we will fail to develop new ventures that
diversify our risk, increase our growth rates and generate future earnings,
failure to achieve expected membership growth due to premium increases, market
exits or other factors, an unfavorable pricing environment, failure to continue
current cost control and pricing strategies or to implement planned changes,
actual medical claims results differing from current estimates, provider
financial problems or bankruptcy, inability to achieve expected efficiencies in
operations or effectively control health care costs, new regulations or laws
relating to capitation, Medicare reimbursement formulas, benefit mandates,
service, utilization management, provider contracts and similar matters, failure
to favorably resolve purported class-action lawsuits, availability of internally
generated cash to fund common stock repurchases and repay debt, and failure to
successfully integrate health plan or membership acquisitions. Additional
information on factors, risks and uncertainties that could potentially affect
our financial results may be found in documents we file with the Securities and
Exchange Commission including our March 31, 2000 Form 10-Q.
