<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1995
Commission File Number: 33-8686
PARTNERS HEALTH PLAN OF PENNSYLVANIA, INC.
(Exact name of registrant as specified in its charter)
Pennsylvania 25-1536040
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
5700 Corporate Drive
Suite 300
P.O. Box 101769
Pittsburgh, Pennsylvania 15237
(Address of principal executive offices) (Zip Code)
(412) 366-9000
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
Yes X No
--- ---
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date:
As of October 31, 1995, 6,075 shares of the registrant's Common Stock, no
par value, were issued and outstanding.
1
<PAGE> 2
PARTNERS HEALTH PLAN OF PENNSYLVANIA, INC.
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PART I. FINANCIAL INFORMATION PAGE
------- --------------------- ----
<S> <C> <C>
Item 1. FINANCIAL STATEMENTS.
CONSOLIDATED BALANCE SHEETS
As of September 30, 1995 and December 31, 1994 3
CONSOLIDATED STATEMENTS OF OPERATIONS
For the three and nine months ended September 30, 1995 and 1994 4-5
CONSOLIDATED STATEMENTS OF STOCKHOLDERS'
EQUITY (DEFICIENCY)
For the nine months ended September 30, 1995 and 1994 6
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the nine months ended September 30, 1995 and 1994 7
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 8-10
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS. 11-12
PART II. OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS. 13
Item 6. EXHIBITS AND REPORTS ON FORM 8-K. 13
SIGNATURES 14
</TABLE>
2
<PAGE> 3
PART I.
Item 1. FINANCIAL STATEMENTS
PARTNERS HEALTH PLAN OF PENNSYLVANIA, INC.
AND SUBSIDIARIES
Consolidated Balance Sheets
<TABLE>
<CAPTION>
September 30, December 31,
1995 1994
---- ----
Assets (unaudited)
<S> <C> <C>
Cash and cash equivalents $ 11,355,351 $ 8,051,632
Debt securities available for sale, at fair value (amortized cost
$1,004,657 at December 31, 1994) -- 1,006,497
Receivables:
Premiums, less allowance for doubtful accounts of $12,152
and $69,422 at September 30, 1995 and December 31, 1994, respectively 413,799 170,940
Reinsurance -- 52,338
Interest 1,789 --
Due from affiliate 329,135 --
Restricted investments 231,852 216,998
Deferred Federal income tax receivable 302,102 258,812
------------ ------------
Total assets $ 12,634,028 $ 9,757,217
------------ ------------
Liabilities and Stockholders' Equity (Deficiency)
Health care claims payable $ 5,961,813 $ 5,463,119
Unearned premiums 506,564 328,765
Accounts payable and accrued liabilities 1,438,172 719,194
Due to affiliate 296,024 9,388
Federal income tax payable 364,564 387,929
Note payable to related party 162,017 412,017
Redeemable preferred stock 2,955,000 2,955,000
------------ ------------
Total liabilities 11,684,154 10,275,412
Stockholders' equity (deficiency):
Common stock, no par value, $0.10 stated value, 100,000 shares authorized,
6,075 and 6,081 shares issued and outstanding at
September 30, 1995 and December 31, 1994, respectively 609 609
Additional paid-in capital 2,967,403 2,976,403
Net unrealized capital gains 678 1,196
Accumulated equity (deficiency) (2,018,816) (3,496,403)
------------ ------------
Total stockholders' equity (deficiency) 949,874 (518,195)
Commitments and contingencies -- --
------------ ------------
Total liabilities and stockholders' equity (deficiency) $ 12,634,028 $ 9,757,217
------------ ------------
Stockholders' equity (deficiency) per common share $ 156.36 $ (85.22)
------------ ------------
</TABLE>
See notes to the consolidated financial statements.
3
<PAGE> 4
PARTNERS HEALTH PLAN OF PENNSYLVANIA, INC.
AND SUBSIDIARIES
Consolidated Statements of Operations
<TABLE>
<CAPTION>
For the three months ended September 30, 1995 1994
---- ----
(unaudited) (unaudited)
<S> <C> <C>
Revenue:
Health care premiums $6,789,847 $8,153,354
Interest 137,402 102,236
---------- ----------
Total revenue 6,927,249 8,255,590
---------- ----------
Expenses:
Health care:
Health care claims 4,791,830 6,538,702
Reinsurance premiums 12,500 134,350
---------- ----------
Total health care expenses 4,804,330 6,673,052
Management fees 730,513 1,241,886
Marketing, general and administrative 200,023 186,537
---------- ----------
Total expenses 5,734,866 8,101,475
---------- ----------
Income before federal income taxes 1,192,383 154,115
Federal income tax expense 417,335 53,940
---------- ----------
Net income $ 775,048 $ 100,175
---------- ----------
Net income per weighted average common share $ 127.56 $ 16.47
---------- ----------
Weighted average number of common shares outstanding 6,076 6,083
---------- ----------
</TABLE>
See notes to the consolidated financial statements.
4
<PAGE> 5
PARTNERS HEALTH PLAN OF PENNSYLVANIA, INC.
AND SUBSIDIARIES
Consolidated Statements of Operations
<TABLE>
<CAPTION>
For the nine months ended September 30, 1995 1994
---- ----
(unaudited) (unaudited)
<S> <C> <C>
Revenue:
Health care premiums $21,095,243 $26,052,776
Interest 425,567 251,417
----------- -----------
Total revenue 21,520,810 26,304,193
----------- -----------
Expenses:
Health care:
Health care claims 16,114,335 20,632,421
Reinsurance premiums, less recoveries of $63 and $47,673
for 1995 and 1994, respectively 41,586 389,621
----------- -----------
Total health care expenses 16,155,921 21,022,042
Management fees 2,625,984 3,943,910
Marketing, general and administrative 465,694 530,000
Depreciation and amortization -- 493
----------- -----------
Total expenses 19,247,599 25,496,445
----------- -----------
Income before federal income taxes 2,273,211 807,748
Federal income tax expense 795,624 282,711
----------- -----------
Net income $ 1,477,587 $ 525,037
----------- -----------
Net income per weighted average common share $ 243.06 $ 86.30
----------- -----------
Weighted average number of common shares outstanding 6,079 6,084
----------- -----------
</TABLE>
See notes to the consolidated financial statements.
5
<PAGE> 6
PARTNERS HEALTH PLAN OF PENNSYLVANIA, INC.
AND SUBSIDIARIES
Consolidated Statements of Stockholders' Equity (Deficiency)
For the nine months ended September 30, 1995 and 1994
(Unaudited)
<TABLE>
<CAPTION>
Net Total
Common Stock Unrealized Stockholders'
------------
Additional Capital Accumulated Equity
Shares Amount Paid in Capital Gains/(Losses) Deficiency (Deficiency)
------ ------ --------------- -------------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
Balance at December 31, 1993 6,084 $ 609 $ 2,981,959 $ 2,196 $(4,833,940) $(1,849,176)
Stock Redemptions (2) (3,704) (3,704)
Net income -- -- -- -- 525,037 525,037
Net unrealized capital losses -- -- -- (2,843) -- (2,843)
----------- ----------- ----------- ----------- ----------- -----------
Balance at September 30, 1994 6,082 $ 609 $ 2,978,255 $ (647) $(4,308,903) $(1,330,686)
=========== =========== =========== =========== =========== ===========
Balance at December 31, 1994 6,081 $ 609 $ 2,976,403 $ 1,196 $(3,496,403) $ (518,195)
Stock Redemptions (6) (9,000) (9,000)
Net income -- -- -- -- 1,477,587 1,477,587
Net unrealized capital losses -- -- -- (518) -- (518)
----------- ----------- ----------- ----------- ----------- -----------
Balance at September 30, 1995 6,075 $ 609 $ 2,967,403 $ 678 $(2,018,816) $ 949,874
=========== =========== =========== =========== =========== ===========
</TABLE>
See notes to the consolidated financial statements.
6
<PAGE> 7
PARTNERS HEALTH PLAN OF PENNSYLVANIA, INC
AND SUBSIDIARIES
Consolidated Statements of Cash Flows
<TABLE>
<CAPTION>
For the nine months ended September 30, 1995 1994
---- ----
(unaudited) (unaudited)
<S> <C> <C>
Cash flows from operating activities:
Net income $ 1,477,587 $ 525,037
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization -- 493
Provision for bad debts 17,064 16,755
Changes in operating assets and liabilities:
(Increase) decrease in premiums receivable (259,923) 121,144
Decrease in reinsurance receivable 52,338 49,511
(Increase) decrease in other receivables (1,789) 19,988
Decrease in due from affiliates -- 135,255
(Increase) decrease in other current assets (329,135) 15,434
(Increase) decrease in deferred Federal income tax receivable (43,655) 11,034
Increase (decrease) in health care claims payable 498,694 (155,085)
Increase (decrease) in unearned premiums 177,799 (156,055)
Increase in accounts payable and accrued liabilities 718,978 190,723
Increase in due to affiliates 286,636 --
(Decrease) increase in Federal income tax payable (23,365) 74,328
------------ ------------
Net cash provided by operating activities 2,571,228 848,562
------------ ------------
Cash flows from investing activities:
Sale of debt securities available for sale, net 1,005,301 6,890,016
Purchase of restricted investments (13,811) (2,702)
------------ ------------
Net cash provided by investing activities 991,490 6,887,314
------------ ------------
Cash flows from financing activities:
Payment of note payable to related party (250,000) --
Redemptions of common stock (9,000) (3,704)
------------ ------------
Net cash used for financing activities (259,000) (3,704)
------------ ------------
Net increase in cash and cash equivalents 3,303,719 7,732,172
Cash and cash equivalents at beginning of period 8,051,632 261,055
------------ ------------
Cash and cash equivalents at end of period $ 11,355,351 $ 7,993,227
------------ ------------
Supplemental disclosures of cash flow information:
Income taxes paid $ 862,000 $ 197,000
------------ ------------
</TABLE>
See notes to the consolidated financial statements.
7
<PAGE> 8
PARTNERS HEALTH PLAN OF PENNSYLVANIA, INC.
AND SUBSIDIARIES
Notes to Consolidated Financial Statements
Note 1- Organization
PARTNERS Health Plan of Pennsylvania, Inc. (the "Company") and its
subsidiaries, Aetna Health Plans of Western Pennsylvania, Inc. (the
"Plan") and Physicians Health Plan Preferred, Inc. (the "PPO") are
for-profit Pennsylvania corporations. The Plan is a federally qualified
health maintenance organization ("HMO") licensed to conduct business in
the state of Pennsylvania. The Plan provides a specified range of
comprehensive medical services to an enrolled population through
contracted providers. Most of the Plan's member groups are located in
western Pennsylvania, including the metropolitan area of Pittsburgh,
Pennsylvania. The PPO had no operations for the three and nine months
ended September 30, 1995 and 1994.
As of September 30, 1995, the Company is owned 81% by AHP Holdings, Inc.
("AHP Holdings"), and 19% by participating physicians. AHP Holdings is
wholly-owned by Aetna Life Insurance Company ("ALIC"), which is
wholly-owned by Aetna Life and Casualty Company ("Aetna").
Note 2 - Basis of Presentation
The accompanying consolidated financial statements have been prepared in
accordance with generally accepted accounting principles and are
unaudited. These interim statements necessarily rely heavily on estimates,
including assumptions as to annualized tax rates. In the opinion of
management, all adjustments necessary for a fair statement of results for
the interim periods have been made. All such adjustments are of a normal,
recurring nature.
Note 3 - Related Party Transactions
The Plan has a management agreement with Aetna Health Management ("AHM"),
which provides substantially all management, marketing, financial, and
administrative services to the Plan. Fees for these services are based
upon a percentage of net premiums (as defined in the agreement) and
interest revenue. Fees under this agreement were $730,513 and $2,625,984
for the three and nine months ended September 30, 1995, respectively, and
$1,241,886 and $3,943,910 for the three and nine months ended September
30, 1994, respectively. Included in total liabilities at September 30,
1995 and December 31, 1994 were $296,024 and $9,388, respectively, which
were related to the unpaid portion of management fees.
In February, 1992, the Plan amended its Articles of Incorporation to
authorize 10,000 shares of redeemable preferred stock with no par value.
Under the terms of the redeemable preferred stock, 33% of the available
earnings of the Plan at the end of each calendar year must (subject to
regulatory approval) be used (1) to pay up to $250,000 per year of the
accrued interest under the note payable to AHP Holdings (see description
following) and (2) after all such accrued interest has been paid, to
redeem shares of the redeemable preferred stock at $1,000 per share.
8
<PAGE> 9
PARTNERS HEALTH PLAN OF PENNSYLVANIA, INC.
AND SUBSIDIARIES
Notes to Consolidated Financial Statements
"Available earnings" are defined for this purpose as excess earnings of
the Plan for the year after subtraction of that amount necessary to
continue to meet statutory net equity requirements and before declaration
of common stock dividends. Based on available earnings for 1994 and 1993
as defined, an interest payment of $250,000 was made to AHP Holdings in
the second quarter of 1995 and the fourth quarter of 1994. At any time on
or after March 1, 2002, the holders of the redeemable preferred stock may
convert their shares for shares of common stock of the Plan having an
aggregate value of $1,000 per share, calculated on the basis of the net
equity of the Plan as of the conversion date. Shares redeemed, converted
or otherwise acquired by the Plan shall not be reissued, and all such
shares shall be canceled.
Effective June, 1992, the Plan entered into a Stock Subscription Agreement
(the "Agreement") with AHP Holdings pursuant to which AHP Holdings
acquired 2,955 shares of the redeemable preferred stock in exchange for
the entire principal amount of the note payable due to AHP Holdings. Each
share was exchanged for the forgiveness of $1,000 of the note payable
principal balance. In addition, the Agreement suspends accrual of interest
on the note payable from and after December 31, 1991. Therefore, no
interest was accrued in 1995 or 1994. Note payable to related party, as
reflected in the consolidated balance sheets, of $162,017 at September 30,
1995 and $412,017 at December 31, 1994 represents accrued interest on the
note payable.
The Plan has a reinsurance agreement with ALIC. Premiums paid under this
agreement were $12,500 and $41,649 for the three and nine months ended
September 30, 1995, and $134,350 and $437,294 for the three and nine
months ended September 30, 1994, respectively. Reinsurance receivables due
from ALIC were $52,338 at December 31, 1994. In the second quarter of
1995, the reinsurance agreement was revised such that effective January 1,
1995, the reinsurer is liable for 100% of the Plan's incurred claims
during the contract year which are in excess of 96% of the Plan's earned
premiums. For the month ended January 31, 1994, the reinsurer was liable
for 90% of all claims over $75,000 with no daily maximum benefit. For the
period from February 1, 1994 through December 31, 1994, the reinsurer was
liable for 70% of all claims over $100,000 with no daily maximum benefit.
As a result of the above-indicated revision to the reinsurance agreement,
reinsurance premiums paid during the first six months of 1995, under the
previous arrangement, will be refunded to the Plan. Accordingly, a
receivable was established and is included in due from affiliate.
The Plan's benefit package is offered to Aetna for its employees. Premiums
for health care services received by the Plan from Aetna were
approximately $220,000 and $670,000 for the three and nine months ended
September 30, 1995, respectively, and $205,000 and $621,000 for the three
and nine months ended September 30, 1994, respectively.
9
<PAGE> 10
PARTNERS HEALTH PLAN OF PENNSYLVANIA, INC.
AND SUBSIDIARIES
Notes to Consolidated Financial Statements
Certain contracted health care providers are also owners of the Plan.
Health care expenses include approximately $371,000 and $1,840,000 for the
three and nine months ended September 30, 1995, respectively, and $903,000
and $2,800,000 for the three and nine months ended September 30, 1994,
respectively, for these providers.
The Plan recently compensated a Pittsburgh area hospital for disputed
reimbursement relative to contractually agreed upon rates for services
provided to both the Plan's members and members of various health plans
insured or administered by Aetna over the past several years. AHM, which
has general management responsibility for the Plan, reimbursed the Plan
for the amount of the settlement through a management fee adjustment, and
as a result, the settlement has had no financial impact on the Plan.
Note 4 - Income Taxes
The Company is included in the consolidated Federal income tax return of
Aetna. Pursuant to a tax sharing agreement between the Company and Aetna,
the Company incurs expenses or receives benefits relating to the use of
its taxable income or losses in the consolidated tax return. This
agreement also allows for the recognition of deferred taxes based upon the
tax position of the consolidated group.
The current Federal income tax payable of $364,564 and $387,929 at
September 30, 1995 and December 31, 1994, respectively, represents amounts
owed to Aetna for Federal income tax expenses in excess of amounts already
paid.
Note 5 - Net Income Per Common Share
Net income per common share is computed using net income divided by the
weighted average number of common shares outstanding. The Company does not
currently have common stock equivalents or convertible preferred stock
which would otherwise be included in the calculation of fully diluted
earnings per share. There is not a significant difference between primary
and fully diluted earnings per share.
10
<PAGE> 11
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS.
Results of Operations. The Company's net income for the three and nine
months ended September 30, 1995, was $775,048 ($127.56 per share) and
$1,477,587 ($243.06 per share), respectively, compared to net income for
the three and nine months ended September 30, 1994, of $100,175 ($16.47
per share) and $525,037 ($86.30) per share, respectively. The increase in
net income for three and nine months ended September 30, 1995, was
primarily due to favorable medical experience. Decreases in management
fees, reinsurance premiums and an increase in interest income also
contributed to the favorable results. These favorable factors were
partially offset by a decrease in premium revenue.
Operating income (health care premiums less health care expenses)
increased 34% to $1,985,517 and decreased 2% to $4,939,322 for the three
and nine months ended September 30, 1995, respectively, as compared to
$1,480,302 and $5,030,734 for the three and nine months ended September
30, 1994. The increase in operating income reflects a decrease in health
care expenses that was due to the decrease in the medical cost ratio
(total cost of health care expenses divided by total health care
premiums), which was 71% and 77% for the three and nine months ended
September 30, 1995, respectively, compared to 82% and 81% for the three
and nine months ended September 30, 1994. The decrease in the medical cost
ratio from September 30, 1994, to September 30, 1995, reflects a decrease
in medical expenses due to improved medical expense trends, including
benefits realized from the adjustment of medical reserves reflecting
emerging favorable medical experience from prior years. The favorable
impact of the decrease in health care expenses was offset in part by the
decrease in premium revenues due to a reduction in membership from
September 30, 1994 to September 30, 1995, along with a decrease in
Medicaid capitated revenue reimbursement rates.
Revenue decreased by 16% to $6,927,249 ($138.12 per member per month) and
18% to $21,520,810 ($137.06 per member per month) for the three and nine
months ended September 30, 1995, respectively, compared to $8,255,590
($136.52 per member per month) and $26,304,193 ($139.15 per member per
month) for the three and nine months ended September 30, 1994,
respectively. The revenue decrease in 1995 was attributable to a decrease
in membership and a decrease in Medicaid capitated revenue reimbursement
rates reflecting a change in the Medicaid membership demographics.
Membership decreased 19% to 16,379 at September 30, 1995, compared to
20,166 at September 30, 1994. The decrease in membership levels was due to
market demand that continues to shift some members to Aetna's point of
service (POS) products (which are not offered by the HMO) and a loss of
other members to various competitors in the market. These factors more
than offset the addition of new groups and additional market penetration
in existing groups.
Interest revenue was $137,402 ($2.74 per member per month) and $425,567
($2.71 per member per month) for the three and nine months ended September
30, 1995, respectively, as compared to $102,236 ($1.69 per member per
month) and $251,417 ($1.33 per member per month) for the three and nine
months ended September 30, 1994. The increase in interest revenue from
1994 to 1995 reflects an increase in interest-yielding assets due to the
Plan's continued profitable position.
Health care expenses decreased 28% to $4,804,330 ($95.79 per member per
month) and 23% to $16,155,921 ($102.89 per member per month) for the three
and nine months ended September 30, 1995, respectively, compared to
$6,673,052 ($110.35 per member per month) and $21,022,042 ($111.21 per
member per month) for the three and nine months ended September 30, 1994,
respectively. The decrease in health care expenses in the first nine
months of 1995 was primarily attributable to improved medical expense
trends, which include benefits realized from the adjustment of medical
reserves to reflect emerging favorable medical experience from prior years
and the decrease in membership levels.
11
<PAGE> 12
Management fees for the three and nine months ended September 30, 1995,
decreased $511,373 or 41% and $1,317,926 or 33%, respectively, when
compared to the same periods a year ago. The decrease was due to the
reduction in the Plan's premium revenue, a decrease in the management fee
percentage paid by the Company and an adjustment to the management fees
due to a recent settlement with a Pittsburgh area hospital (see Notes to
Consolidated Financial Statements). Under the management contract with
AHM, fees for management services are based on a percentage of premium
revenue and interest income. Fees under this agreement were $730,513 and
$2,625,984 for the three and nine months ended September 30, 1995,
respectively, and $1,241,886 and $3,943,910 for the three and nine months
ended September 30, 1994, respectively.
Marketing, general and administrative expenses increased $13,486 (7%) and
decreased $64,306 (12%) for the three and nine months ended September 30,
1995, when compared to the same periods a year ago. The primary factor
contributing to the decrease for the nine months ended September 30, 1995,
reflects a reduction in broker commissions that are calculated as a
percentage of revenue.
The outlook for the Company is heavily dependent upon its ability to
effectively manage health care costs for customers. The Company attempts
to achieve this through a combination of negotiated contracts with health
care providers, development and implementation of guidelines for
appropriate utilization of health care resources and by working with
health care providers to review treatment patterns in order to improve
consistency and quality.
Legislative proposals to change the health insurance system have been
prominent at both the state and national levels. Aetna has actively
supported proposals designed to enhance managed care and to expand access
to health care coverage through private sector competition. Although
anti-managed care legislation is expected to be proposed broadly in the
states, to date such legislation has been enacted in only a few states
and, where enacted, has been limited in its scope. Management is not able
to predict the outcome of the various state and federal initiatives, or
the effect any such legislation, if adopted, would have on the Company.
Liquidity and Capital Resources. Cash and cash equivalents at September
30, 1995, and December 31, 1994, were $11,355,351 and $8,051,632,
respectively. Operations were funded with cash generated primarily from
premium revenues and interest earnings on cash, cash equivalents and
short-term investments. The Company does not anticipate making any
material capital expenditures in the future. The Company believes that its
existing capital resources, together with funds generated from operations,
will be sufficient to meet its normal working capital requirements and
capital commitments for the foreseeable future.
The Plan is required to maintain a minimum amount of net equity as defined
by regulation and statute. A Pennsylvania regulation, effective January 1,
1993, requires an operational HMO to have as minimum net equity the
greater of $1,000,000 or three months uncovered health care expenditures
for Pennsylvania enrollees as reported on the most recent financial
statement filed with the Commonwealth of Pennsylvania. An existing HMO has
four years to meet the net equity requirements in increments of $250,000
by January 1st of each year. As of September 30, 1995, the minimum net
equity requirement as defined was $750,000. The Plan's net equity,
including redeemable preferred stock, as defined by regulation and statute
was $3,602,772 at September 30, 1995.
12
<PAGE> 13
PART II.
ITEM 1. LEGAL PROCEEDINGS.
There are no legal proceedings pending against the Company, the PPO, or the
HMO which, if successful, would materially adversely affect the operations
or financial condition of the Company.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
a. Exhibits
(27) Financial Data Schedule.
b. Reports on Form 8-K.
None
13
<PAGE> 14
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Company has duly caused this Report to be signed on its behalf by the
undersigned, thereunto duly authorized.
PARTNERS HEALTH PLAN OF
PENNSYLVANIA, INC.
Date: November 14, 1995 /s/ Steven W. Jones
-------------------
Steven W. Jones, President
(Principal Executive Officer)
Date: November 14, 1995 /s/ Joseph F. Brislin
---------------------
Joseph F. Brislin
Assistant Vice President of Aetna
Life Insurance Company
(acting in the capacity of Principal
Accounting Officer and Principal
Financial Officer of the Company)
14
<TABLE> <S> <C>
<ARTICLE> 7
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS CONTAINED IN THE FORM 10Q FOR THE QUARTERLY PERIOD ENDED
SEPTEMBER 30, 1995 FOR PARTNERS HEALTH PLAN OF PENNSYLVANISA INC. AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH STATEMENTS.
</LEGEND>
<CIK> 0000801335
<NAME> PARTNERS HEALTH PLAN OF PENNSYLVANIA
<MULTIPLIER> 1
<CURRENCY> U.S. Dollars
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> SEP-30-1995
<EXCHANGE-RATE> 1
<DEBT-HELD-FOR-SALE> 0
<DEBT-CARRYING-VALUE> 0
<DEBT-MARKET-VALUE> 0
<EQUITIES> 0
<MORTGAGE> 0
<REAL-ESTATE> 0
<TOTAL-INVEST> 0
<CASH> 11,355,351
<RECOVER-REINSURE> 0
<DEFERRED-ACQUISITION> 0
<TOTAL-ASSETS> 12,634,028
<POLICY-LOSSES> 5,961,813
<UNEARNED-PREMIUMS> 506,564
<POLICY-OTHER> 0
<POLICY-HOLDER-FUNDS> 0
<NOTES-PAYABLE> 162,017
<COMMON> 609
0
2,955,000<F1>
<OTHER-SE> 949,874
<TOTAL-LIABILITY-AND-EQUITY> 12,634,028
21,095,243
<INVESTMENT-INCOME> 425,567
<INVESTMENT-GAINS> 0
<OTHER-INCOME> 0
<BENEFITS> 16,114,335
<UNDERWRITING-AMORTIZATION> 0
<UNDERWRITING-OTHER> 0
<INCOME-PRETAX> 2,273,211
<INCOME-TAX> 795,624
<INCOME-CONTINUING> 1,477,587
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,477,587
<EPS-PRIMARY> 243.06
<EPS-DILUTED> 0<F2>
<RESERVE-OPEN> 0
<PROVISION-CURRENT> 0
<PROVISION-PRIOR> 0
<PAYMENTS-CURRENT> 0
<PAYMENTS-PRIOR> 0
<RESERVE-CLOSE> 0
<CUMULATIVE-DEFICIENCY> 0
<FN>
<F1>REPRESENTS A LIABILITY ON THE COMPANY'S BALANCE SHEET.
<F2>THERE IS NOT A SIGNIFICANT DIFFERENCE BETWEEN PRIMARY AND FULLY DILUTED
EARNINGS PER SHARE.
</FN>
</TABLE>
