Coventry sees lower profit, revenue

Daily Record Staff//May 1, 2013//

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Coventry Health Care Inc., of Bethesda, a managed health care company, reported first-quarter net income of $135.4 million, or $1 per diluted share, down from the prior-year’s first-quarter net income of $170.7 million, or $1.20 per diluted share. Revenue dropped to $3.5 billion from $3.7 billion in the 2012 quarter.

Coventry said a change in the way in which the Centers for Medicare & Medicaid Services pays Medicare Advantage plans was primarily responsible for the reduced results. Excluding that change, Coventry said first-quarter revenue was down by less than 1 percent.

Analysts polled by Thomson Reuters had forecast, on average, earnings of 82 cents per share on revenue of $3.7 billion.

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