HealthAmerica Corporation history

The company grew rapidly and went public, but it ran into trouble in 1986 when the entire health insurance industry encountered a rough patch that sent stock prices tumbling.

In 1988 Coventry completed two transactions.

1990's1990Mental Health America and the American Red Cross jointly published and distributed more than 250,000 copies of When the Yellow Ribbons Come Down, a guidebook to help Operation Desert Storm veterans and their families cope with readjusting to life at home.

To fund further growth Coventry made an initial public offering of stock in 1991.

Coventry adjusted its business mix in 1992 when management elected to discontinue the operations of American Service Company in order to focus on running HMOs.

In 1994 Coventry paid $50 million in cash to buy the remaining 20 percent interest it did not own of Penn Group Corporation.

By the end of 1996 Coventry had some 120,000 members enrolled in its Medicaid risk product.

Coventry Merging with Principal Health Care in 1997

The $375 million stock swap, which closed in 1998, created a $2.4 billion company with 1.9 million members located in 18 markets.

For the year Coventry saw its revenues improve to more than $2.6 billion and net income grow to $61.3 million after sales of $2.16 billion and earnings of $43.4 million in 1999.