Mass. adopts healthcare rating system
THE REGION
Mass. adopts healthcare rating system
Massachusetts has adopted a new health insurance rating system that will give state employees and retirees a discount when they choose low-cost, high-quality hospitals and doctors -- and charge them more when they go to high-cost, low-quality providers. The Group Insurance Commission, which manages benefits for 265,000 state employees, retirees, and their families, has negotiated contracts with Tufts Health Plan, Harvard Pilgrim Health Care, and UNICARE, which administers the state's traditional fee-for-service plan, to launch so-called "tiered networks" starting July 1. Because of rising health insurance costs, the commission wants to direct employees to efficient and high-quality providers, and also encourage all providers to improve efficiency and quality, said executive director Dolores Mitchell. For example, Tufts members who choose the highest-rated hospitals will pay a $200 copayment per admission while those who choose the lowest-rated will pay $600. (Liz Kowalczyk)
Biogen Idec sees revenue, earnings gains
Drug-development firm Biogen Idec Inc. said it expects 15 percent annual growth for revenue and a 20 percent earnings growth rate through 2007 as a result of the synergies created by its recent merger and the improvement in sales of its lead drugs. Chief executive James Mullen, speaking at SG Cowen's 24th Annual Health Care Conference in Boston, said the merger with Idec Pharmaceuticals, which closed Nov. 12, should result in $300 million or more in operating cost savings, $175 million in capital spending savings, and improved cash flow. The combined sales of the two companies for 2003 was almost $2 billion, led by four drugs, Avonex for multiple sclerosis, Rituxan for non-Hodgkins lymphoma, Amevive for psoriasis, and Zevalin for lymphomas. (Dow Jones)
Talbots net falls 22% in fourth quarter
Talbots Inc., which sells classically styled women's and children's clothing, said fourth-quarter net income fell 22 percent after store and catalog sales declined during the holiday season. Net income dropped to $22 million, or 38 cents a share, from $28.3 million, or 48 cents a share, a year earlier, the Hingam company said. Sales in the quarter ended Jan. 31 fell to $431.6 million from $431.8 million. Talbots cited the poor performance of its post-Christmas clearance, as well as low inventory, a spokeswoman said. Sales at stores open at least a year fell 4.7 percent. Catalog sales declined 12 percent to $60.2 million because of inventory cuts and reduced circulation. The average estimate of 17 analysts surveyed by Thomson Financial was for a profit of 40 cents a share, while nine analysts expected sales of $433.3 million on average. For the year, net income fell 13 percent to $104.7 million, or $1.81 a share, from $120.8 million, or $2.01 a share, a year earlier. Sales rose 1.8 percent to $1.62 billion from $1.60 billion. (Bloomberg)
AirTran plans to fly from Boston to Va.
AirTran Airways said it plans to start daily service between Logan International Airport and Newport News, Va., June 5. The carrier said it will fly two daily nonstop, roundtrip flights with departures from Boston at 11:05 a.m. and 4:15 p.m. Introductory fares on the flights will start at $49 each way for a coach ticket purchased seven days in advance. Walk-up fares will start at $119 each way, and business class fares begin at $149 each way. The fares are subject to taxes and fees. Travel must be completed by June 30. (Keith Reed)
JetBlue to begin Boston-Oakland service
JetBlue Airways said it will add Oakland, Calif., to the list of cities it serves from Boston, making it the only carrier to fly nonstop between the two markets. JetBlue will operate two daily roundtrips between Logan International Airport and Oakland beginning May 4. Tickets on the flights will start with an introductory fare of $99 each way, with departures from Boston at 8:20 a.m. and 8:20 p.m. daily. Return service will leave Oakland at 10:20 a.m. for a 7:20 p.m. arrival and 10:25 p.m. for a 7:25 a.m. arrival. (Keith Reed)
THE NATION
Target may sell Marshall Field's, Mervyn's
Target Corp., the No. 2 US discount retailer, said it may sell its Mervyn's and Marshall Field's department stores to concentrate on its faster-growing discount chain. Target hired Goldman Sachs Group Inc. to review options for the businesses, a Target spokeswoman said. Mervyn's operates 266 stores; Marshall Field's has 62 locations. Target said results at the chains remain below historical levels though the company had dedicated significant effort to boosting results. Last year sales shrunk 4 percent and 6.9 percent at Marshall Field's and Mervyn's, respectively. The Target chain's same-store sales climbed 12 percent. Shares of Target rose to $44.25 in afterhours trading after falling $1.12 to $41.73 in regular composite trading. (Bloomberg)
Scrushy claims prosecutor was unethical
HealthSouth Corp. founder Richard Scrushy, who is charged with fraud and money laundering, filed a complaint accusing US Attorney Alice Martin of violating legal ethics standards. Scrushy's complaint to the Justice Department's Office of Professional Responsibility accused the prosecutor of concealing evidence from his lawyers that shows his innocence. Among the materials withheld are 12 hours of recordings between Scrushy and top HealthSouth executives who later cooperated with the government, lawyers said. Scrushy and his lawyers have filed two previous ethics complaints against Martin. Scrushy has previously claimed that an FBI agent improperly disclosed details of the probe to a female witness and that prosecutors have tried to smear him by leaking information to the press. Scrushy is scheduled to go on trial in August on charges he masterminded a plot to inflate assets, increase profits, and boost the price of HealthSouth shares. He has pleaded not guilty to the charges. (Bloomberg)
Computer shipments seen growing 22%
Worldwide personal-computer shipments will increase 11 percent in both 2004 and 2005 as businesses spend more and users buy more laptops, market researcher IDC said. Fourth-quarter shipments rose 15.7 percent, and those for 2003 gained 11.7 percent to 154.5 million units, IDC said. The value of the shipments increased by 1.2 percent, to $178 billion. Units and value both increased for the first time since 2000. US notebook-computer shipments will expand more than 30 percent in the next two years, helping the country to maintain total unit growth of at least 10 percent in the period, the report says. Consumers and business users increasingly are switching from desktops to notebooks with wireless Internet links, analysts say. (Bloomberg)
. . .Etc.
Stratus Technologies Inc. of Maynard said it closed a big sale of its first new telecommunications product since it was spun out of Ascend Communications in 1999, a Linux-powered voice network device being used by Korea Telecom through a Stratus sales partnership with LG Electronics of South Korea. Terms were not disclosed . . . Raytheon Co. said it established a joint venture with German defense company Diehl Group to market air-to-air missiles in Europe. The primary focus of the venture will be upgrading and marketing the Sidewinder, a short-range guided missile, a Raytheon spokeswoman said. The companies expect sales from the venture of $367 million in the next five years, she said . . . Closely held CombinatoRx Inc. of Boston said it raised $30 million in its third venture-capital round, bringing to $90 million the amount the company has raised to develop drugs based on new combinations of medicines. (Globe staff and wire services)
