Managed Healthcare Executive - December 2008 - (Page 17)

We don’t have a single strategy for changing people’s behaviors. stock—the largest IPO in Puerto Rico’s history. The next largest IPO was a major banking rm, o ering $100 million in stock in 1964. Because Triple-S founders still own common stock, a dual stock arrangement was created as part of the IPO process to protect the new shareholders from risk. At some point, the privately traded stock, which currently accounts for 50% of shares, will convert to Class B with the board’s approval, Román says. “When we went to those shareholders two years ago, they voted in favor of the dual-class structure because they clearly understood they bear the risk of any possible dilution,” he says. Ruiz-Comas says that the Securities and Exchange Commission (SEC) ling process moved rather quickly because Triple-S had proactively evolved its operations to comply with various governance and operational requirements, such as Sarbanes-Oxley. “When we submitted the documents to the SEC to become a public company, we got the review in less than a week,” he says. “In the rst two days, we were able to sell 100% of the shares.” Ruiz-Comas says Triple-S shares maintained their projected price until the U.S. economy reached one of its low points in mid-October. In its third quarter report, like many other managed care organizations, Triple-S revised its 2008 outlook, reducing its earnings per share expectation to $1.72 to $1.82, down from $1.88 to $1.98. “Under these recent conditions, we have not been a ected signi cantly by the economic situation of Puerto Rico and the United States,” Ruiz-Comas says. “What is important is that you provide the service you need to provide. You have to be conservative in terms of doing what you need to do under the conditions that you’re working. Don’t try to do things to exceed some type of expectation because you’re assuming more risk.” MHE We have millions. No two people are alike. (No two health plans are either.) We have an approach that starts with that premise. For the past ten years, we have had some real success in putting people—and plans—on the road to taking better care of themselves. We like to think it is because we have the ability to custom-tailor our resources to each individual challenge. To see what is possible when you take a fresh look at every situation, contact our Business Development team today at businessdevelopment@healthdialog.com. www.healthdialog.com DECEMBER 2008 17 http://www.healthdialog.com

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Managed Healthcare Executive - December 2008 For Your Benefit Editorial Advisors Contents News Analysis Politics & Policy Letter of the Law Puerto Rico’s PLAN State Report Bundled Payment Technology Drug Class Overview Managed Care Outlook Desktop Resource Ad/Edit Index

Managed Healthcare Executive - December 2008

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