IHC Health Plans, Inc. - Page 18




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          burn center in the region); (2) Neuropsychiatric Institute (to              
          provide psychiatric beds when LDS Hospital temporarily exceeded             
          its inpatient capacity); and (3) Pain Management Center.  Some              
          UMC admissions were related to a unique relationship between                
          Primary Children’s Hospital, a Health Services hospital dedicated           
          to acute care pediatric services, and UMC’s specialized genetic             
          research and other pediatric-related teaching and research                  
          programs.  In addition, petitioner, Group, and Care entered into            
          provider agreements with Davis Hospital and Medical Center,                 
          located in Davis County, Utah, because there were no Health                 
          Services hospitals in the immediate area.                                   
               The following schedule, reflecting petitioner’s experience             
          for the years 1997, 1998, and 1999, presents the total amounts              
          (by percentage) that petitioner was billed for inpatient hospital           
          services by: (1) Health Services hospitals (HS); (2) independent            
          hospitals on petitioner’s panel (Panel-Not Owned); (3)                      
          independent Utah hospitals not on petitioner’s panel (Non Panel-            
          Utah); and (4) independent hospitals outside of Utah and not on             
          petitioner’s panel (Non Panel-Non Utah).                                    
          Year   HS   Panel-Not Owned  Non Panel-Utah  Non Panel-Non Utah             
          1997  93.5%       1.1%             3.9%              1.6%                   
          1998  91.8%       1.7%             4.7%              1.8%                   
          1999  91.7%       1.8%             4.2%              2.3%                   
          Approximately 60 percent of the inpatient charges for enrollees             








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