PacifiCare Exec Pay Expected to Come Up

Speaking of big bucks, executive compensation will surely be discussed at state-sponsored public hearings this week on Cypress-based PacifiCare Health Systems Inc.’s proposed buyout of rival local managed-care giant FHP International Corp.

PacifiCare recently reported that its CEO, Alan Hoops, one of Orange County’s most highly paid executives, got $1.3 million in salary, bonus, profit-sharing and long-term performance awards. He also cashed in stock options worth nearly $1.9 million.

PacifiCare opponent Jamie Court reiterated his repeated criticism of million-dollar-plus pay for executives of a company that’s been accused of encouraging physicians to recommend cheaper drugs at the cost of patient care. Court, of Santa Monica-based Consumers for Quality Care, plans to testify this week at the Irvine hearing on the merger.

Last week, Court’s group called on the state to block the merger and investigate PacifiCare’s policies on recommending certain psychiatric drugs over others that are more costly.

PacifiCare has maintained that Hoops’ pay is in line with that of corporate executives. It also says that drugs on its preferred list generally work as well as higher-priced alternatives, though doctors can request drugs that aren’t on the preferred list.

Barbara Marsh covers health care for The Times. She can be reached at (714) 966-7762 and at [email protected]