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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): December 16, 1996
HEALTH POWER, INC.
(Exact name of registrant as specified in its charter)
Delaware 0-23220 31-1145640
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
1209 Orange Street, Wilmington, Delaware 43017
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (614) 461-9900
No Change
(Former name or former address, if changed since last report)
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ITEM 5. OTHER EVENTS.
The information contained in the press release filed as Exhibit 99 is
incorporated herein by reference.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) EXHIBITS.
Exhibit
No. Description of Exhibit
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99 Press release issued December 16, 1996.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
HEALTH POWER, INC.
Date: December 18, 1996 By /s/ Thomas E. Beaty, Jr.
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Thomas E. Beaty, Jr.,
President
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EXHIBIT INDEX
Exhibit
No. Description of Exhibit
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99 Press release issued December 16, 1996.
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EXHIBIT 99
HEALTH POWER, INC. REPORTS ITS HMO SUBSIDIARY HAS BEEN PLACED
UNDER SUPERVISION BY THE OHIO DEPARTMENT OF INSURANCE. THE
HMO SUBSIDIARY ALSO HAS RECEIVED A ONE-YEAR NCQA ACCREDITATION
HEALTH POWER, INC., COLUMBUS, OHIO (NASDAQ NNM: HPWR) today reported
that its HMO subsidiary was placed under supervision by the Ohio Department of
Insurance effective December 5, 1996. The action follows significant losses
previously reported by the HMO for the second and third quarters of 1996. In
question are whether certain assets included on the HMO's Balance Sheet are
"admitted assets" under statutory accounting principles.
While under supervision, the HMO expects to maintain its normal
business operations, subject to the Department's prior approval of certain
expenditures and transactions. In the meantime, the HMO will continue its
efforts to improve its operating performance and work with the Department in
obtaining adjustments, where appropriate, to the HMO's balance sheet so the
supervision order can be rescinded. There can be no assurances the HMO
subsidiary will be successful in having the supervision order rescinded.
Health Power also announced its HMO subsidiary has received a one-year
accreditation from the National Committee for Quality Assurance (NCQA) in 17
Ohio counties. This accreditation is granted to plans which are found to have a
well-established quality improvement program and which satisfy most NCQA
standards. Thomas E. Beaty, President and Chief Operating Officer of Health
Power, said, "The NCQA accreditation serves to confirm to the public that our
HMO is providing managed care and service to its members of a high standard of
quality."
Health Power, Inc. is a managed care holding company whose two wholly
owned operating subsidiaries are Health Power HMO, Inc. (Health Power HMO) and
CompManagement, Inc. (CompManagement).
Health Power HMO provides comprehensive healthcare services to members
of its health maintenance organization (HMO) in 19 Ohio counties in and around
the cities of Columbus, Dayton, Cincinnati, Cleveland and Youngstown. Health
Power HMO has been a leader in developing the HMO markets for Aid to Families
with Dependent Children (Medicaid) recipients in the service area. It was the
first HMO to offer these services in Columbus and Dayton markets and an early
entrant in the Cincinnati market.
CompManagement offers claims management, medical cost containment and
managed care services to employers with respect to their workers' compensation
and unemployment claims. Further, CompManagement's wholly owned subsidiary,
CompManagement Health Systems, Inc., was recently approved as a managed care
organization for the workers' compensation privatization initiative in the state
of Ohio. CompManagement provides services to over 7,500 employers located in all
88 Ohio counties, and has continued to grow and remain profitable since it was
acquired by Health Power, Inc. in 1995.
