Coventry Health Care Inc.
6705 Rockledge Dr., Suite 900
Bethesda, Md. 20817
www.cvty.com Year founded: 1986 Industry: Health care Revenue: $4.54 Billion Net Income/Loss: $250.15 Million Earnings per share: $2.75 Dividend: n/a Stockholder equity: $929.00 Million Auditor: Ernst & Young LLP Stock: CVH Assets: $1.98 Billion Market capitalization: $4.03 Billion 52-week high: 47.25 4/5/2004 52-week low: 21.3667 4/16/2003 President and CEO: Allen F. Wise COO: Thomas P. McDonough Employees: 4203 Local employees: 204 Description: Coventry Health Care operates health maintenance organizations, preferred provider organizations and other health care plans, including Carelink Health Plans, Group Health Plan and HealthAmerica. At the end of 2003 Coventry's employer- and government-funded health plans had more than 2.9 million members in 15 states in the mid-Atlantic, Midwest and Southeast. Coventry does not operate any plans in the Washington area. Developments: Coventry continues growing by acquisitions, in particular targeting financially distressed health plans. Last year Coventry completed the acquisition of PersonalCare Health Management, picking up an additional 78,000 members in Illinois. In September it bought Altius Health Plans. "That has been the strategy for the last five or six years," said John Stelben, investor relations manager for the company. In early 1998 the company merged with Principal Health Care, which nearly doubled its size, and since then it has been buying up smaller plans, he said. Coventry's bread and butter is selling health care to small and medium-size employers. The challenge is to offer lots of choices while managing the costs of medicine, no easy task in today's environment of rising prices for drugs and medical services. Coventry, Stelben said, turns around the plans that charge too little, spend too much on operational costs or mismanage their patients. Coventry has benefited from rising rates for health care, but its savings come from having a centralized operation handling administration. The company rolled up a 31 percent annualized return on equity in the fourth quarter. The company continues to boost revenue and profit through acquisition and, Stelben said, "we are going to continue to do that." With the stock on its way to topping $45, the company had a 3-for-2 stock split in January 2004. Executive Compensation
President and CEO: Allen F. Wise
Total Cash: $3,000,000.00
Total Compensation: $15,543,404.00 COO: Thomas P. McDonough
Total Cash: $1,600,000.00
Total Compensation: $7,826,052.00 CFO: Dale B. Wolf
Total Cash: $1,598,077.00
Total Compensation: $7,778,528.00
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