Coventry Health Care Inc.

6705 Rockledge Dr., Suite 900

Year founded: 1986

Industry: Health care

Post 200 Category: Top 125 Companies

Revenue: $5.31 Billion

Net Income/Loss: $337.12 Million

Earnings per share: $3.72

Dividend: n/a

Stockholder equity: $1.21 Billion

Auditor: Ernst & Young LLP

Stock: CVH

Assets: $2.34 Billion

Market capitalization: $7.14 Billion

52-week high: 72.59 4/6/2005

52-week low: 36.99 10/19/2004

CEO: Dale B. Wolf

President: Thomas P. McDonough

Employees: 10280

Local employees: 217

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 2004, Coventry's employer- and government-funded health plans had 2.51 million members in 13 states in the mid-Atlantic, Midwest, Southeast and Rocky Mountains. Coventry's target customers are small and medium-size employers.

Developments: Coventry's president and chief executive of eight years, Allen F. Wise, retired in September and was replaced by executive vice president and chief financial officer Dale B. Wolf. While some analysts speculated that Wolf would entertain selling Coventry, the company has stayed on the buying end of transactions. Coventry is betting that bulking up will give it more leverage in dealing with vendors and keeping costs down, while offering more options to members. Last fall, Coventry agreed to pay $1.8 billion to acquire First Health Group Corp. of Downers Grove, Ill., in a deal that would extend Coventry's reach to 50 states. First Health had a rough year. Its stock plunged in April 2004 after company officials, citing increased competition, had to lower quarterly and full-year revenue and profit forecasts. The First Health acquisition, which closed in January, was Coventry's fourth since 2002. Health care mergers do not always produce the promised synergies and cost savings, but Coventry has turned around troubled plans and kept costs down by centralizing administration. For the 12 months ending Dec. 31, 2004, profit was $337 million, up from $250 million for 2003, and revenue was $5.31 billion, up from $4.54 billion.

Executive Compensation
CEO: Dale B. Wolf
Total Cash: $1,473,077.00
Total Compensation: $32,274,307.00

President: Thomas P. McDonough
Total Cash: $1,973,077.00
Total Compensation: $13,763,578.00

Chairman: Allen F. Wise
Total Cash: $2,984,616.00
Total Compensation: $13,052,799.00

Executive Vice President: Harvey C. DeMovick Jr.
Total Cash: $863,846.00
Total Compensation: $3,141,740.00