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Health Net of California to Issue Emergency Loans to Help Keep Safety-Net Health Clinics Open

Posted on: Thursday, 26 June 2008, 09:03 CDT

Health Net of California, Inc., is providing up to $5 million in emergency loans to help keep open the doors of Central Valley safety-net health clinics threatened with temporary closure during the state budget impasse.

"With no state budget in place, these essential health clinics will not receive their usual funding," said Dave Meadows, Health Net's vice president of State Health Programs. "We're stepping in to help ensure people in the communities we serve have uninterrupted access to vital and indispensable health care services."

According to David Quackenbush, chief executive officer of the Central Valley Health Network, temporary closure of clinics or reduction of hours of operation would create a void in the affected communities and potentially force thousands of Californians to go without care.

"Health Net didn't hesitate to intervene and is doing the right thing for the Central Valley," said Quackenbush. "Keeping our doors open means keeping communities healthy."

Health Net's emergency loan program builds on the company's additional financial commitment to clinics begun last year, when it provided crucial loans to three clinics so they could meet expenses while their cash flow was cut off by the late state budget.

Linda Roberts, RN, owner/administrator of the Tipton and Pixley Medical Clinics in Tulare County, called last year's financing a "godsend" that helped her stay open in 2007.

"Residents of the Central Valley depend on health clinics for their routine and urgent care," said Luisa Medina of Central California Legal Services. "The closure of even one health clinic could be devastating to a community, and we applaud the extraordinary efforts to help keep doors open and patients being treated."

About Health Net

Health Net of California, Inc., a subsidiary of Health Net, Inc. (NYSE:HNT), is one of the largest health plans in the state. Together with Health Net Life Insurance Company, it serves nearly 2.3 million members statewide, and contracts with more than 56,000 physicians, 300-plus hospitals and nearly 5,000 pharmacies, giving its members greater choice and more convenient access to care. Its commercial HMO and POS lines of business and its Medicare line of business have received the "excellent" accreditation status from the National Committee for Quality Assurance, and its Medicaid line of business has received the "Commendable" accreditation status. For more information about Health Net, visit its Web site at http://www.healthnet.com/.

About Central Valley Health Network

The Central Valley Health Network is a consortium of 13 Federally Qualified Health Center corporations that provide comprehensive preventive primary care services and advocate on behalf of low-income and medically underserved families throughout the northern, Central Valley and Inland Empire areas of California. In most Central Valley communities, CVHN members are the only safety net provider. More information is available at www.cvhnclinics.org.

For More Information Health Net Inc. Online Newsroom Central Valley Health Network Health Net's Member Web Site Health Net Insurance for Individuals Health Net Medicare Plans

Cautionary Statements

All statements in this press release, other than statements of historical information provided herein, may be deemed to be forward-looking statements. These statements are based on management's analysis, judgment, belief and expectation only as of the date hereof, and are subject to uncertainty and changes in circumstances. Without limiting the foregoing, the words "believes,""anticipates,""plans,""expects,""may,""should,""could,""estimate,""intend" and other similar expressions are intended to identify forward-looking statements. Actual results could differ materially due to, among other things, rising health care costs, negative prior period claims reserve developments, trends in medical care ratios, unexpected utilization patterns or unexpectedly severe or widespread illnesses, membership declines, rate cuts affecting our Medicare or Medicaid business, issues relating to provider contracts, litigation costs, regulatory issues, operational issues, health care reform and general business conditions. Additional factors that could cause actual results to differ materially from those reflected in the forward-looking statements include, but are not limited to, the risks discussed in the "Risk Factors" section included within the company's most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q filed with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements. The company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date of this release.

Source: Business Wire

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