Humana 2003 Annual Report Download - page 26

ITEM 2. PROPERTIES
We own our principal executive office, which is located in the Humana Building, 500 West Main Street,
Louisville, Kentucky 40202. In addition, as of December 31, 2003, we own buildings in Louisville, Kentucky,
and Green Bay, Wisconsin, and lease facilities in Cincinnati, Ohio and Puerto Rico, all of which are used for
customer service, enrollment, and claims processing. During 2003, we completed the consolidation of the San
Antonio, Texas, Jacksonville, Florida, and Madison, Wisconsin customer service center operations into the
remaining four locations. Some of these former service center buildings have been sold or are in the process of
being sold. Our Louisville and Green Bay facilities also house other corporate functions.
We also own or lease administrative market offices and medical centers. We no longer operate most of these
medical centers but, rather, lease them to their provider operators. The following table lists the location of
properties we owned or leased at December 31, 2003:
Medical
Centers
Administrative
Offices
Owned Leased Owned Leased Total
Florida ............................. 2 39 7 50 98
Kentucky ........................... 4 1 11 9 25
Illinois .............................. 7 2 — 11 20
Texas .............................. — — 4 14 18
Georgia ............................. — — — 14 14
Ohio ............................... — — — 13 13
North Carolina ....................... — — — 12 12
Puerto Rico .......................... — — — 10 10
Wisconsin ........................... — — 1 8 9
Missouri/Kansas ...................... 3 2 — 3 8
Virginia ............................. — — — 8 8
Others ..............................1—14042
Total ........................... 17 44 24 192 277
ITEM 3. LEGAL PROCEEDINGS
Securities Litigation
In late 1997, three purported class action complaints were filed in the United States District Court for the
Southern District of Florida by former stockholders of Physician Corporation of America, or PCA, against PCA
and certain of its former directors and officers. We acquired PCA by a merger that became effective on
September 8, 1997. The three actions were consolidated into a single action entitled In re Physician Corporation
of America Securities Litigation. The consolidated complaint alleged that PCA and the individual defendants
knowingly or recklessly made false and misleading statements in press releases and public filings with respect to
the financial and regulatory difficulties of PCA’s workers’ compensation business. The Court certified a class on
May 20, 2003. On August 25, 2003, the parties entered into an agreement to settle the case for the amount of
$10.2 million. On November 26, 2003, the settlement received final approval by the Court. A provision for the
settlement was previously made in our financial statements during the fourth quarter of 2002. The Company had
pursued insurance coverage for this matter from two insurers and has settled the matter with one of the insurers
who will pursue coverage against the other insurer.
Managed Care Industry Purported Class Action Litigation
We have been involved in several purported class action lawsuits that are part of a wave of generally similar
actions that target the health care payer industry and particularly target managed care companies. These include a
lawsuit against us and nine of our competitors that purports to be brought on behalf of physicians who have
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