Reported by Star-Bulletin staff & wire
Tuesday, May 13, 1997
Queen's Health Systems went from a "skinny" initial offer to more than $2.3 million yesterday in a court-approved deal to take over the troubled Pacific Group Medical Association. Queen's takeover of Pacific Group
gets court's OKThe agreement, to take effect later this month, was approved by Circuit Judge Kevin Chang after spirited bidding by Queen's, St. Francis Hospital, and California-based Bridgeport Benefits.
Attorney Nelson Chun of Cades Schutte Flemming & Wright, representing Queen's Health Systems, said the deal will expand Queen's range of insurance offerings. "It gives Queen's the opportunity to offer another product," he said.
The state in March stepped in to take control of PGMA after numerous delays by the company in covering medical claims.
State Insurance Commissioner Rey Graulty was elated after hours of testimony and bidding in the hallways.
"We moved considerably from the figure we started with at the begining of the day," he said. "They initially came up with a very skinny deal."
The Hawaii Medical Service Association says it is increasing dues for its most popular medical plan but that many employers can pay less next year if they switch plans. HMSA says employers
can switch and saveHMSA yesterday said savings of up to 15 percent can be achieved by businesses and their employees when the employees choose alternatives to the Preferred Provider Plan. Dues for that plan go up 2.2 percent July 1 to $145.46 a month for individuals and $405.84 for families. The alternative Health Plan Hawaii will stay at $128.80 for a single and $359.36 for a family, HMSA said.
Barnwell Industries Inc., a Honolulu-based company that explores and develops oil and gas resources, had a 57.7 percent increase in first-quarter profit thanks to high prices for oil and natural gas. Barnwell profit rose 57%
in first quarterThe company today reported a profit of $410,000, equal to 31 cents a share and up 57.7 percent from the $260,000 profit reported for the 1996 first quarter. Revenues for the three months ended March 31 were $3.9 million, up 5.4 percent from the year-earlier period.
Policyholders of Investors Equity Life Insurance Co. of Hawaii will be able to hear details tomorrow of a settlement with Bank of America. State to give details
on Investors Equity dealRey Graulty, state insurance commissioner, said he will conduct an informal public forum in the basement auditorium in the state Capitol, starting at 10 a.m., so those affected will understand the plan before June 4 court confirmation hearing.
About 4,000 island residents held policies when the state seized the company in 1994. The deal is intended to refund their money. Bank of America inherited the problem when it bought Honfed Bank.