HealthSpring, a managed care organization with a primary focus on Medicare, the federal government-sponsored health insurance program, has reported a net income of $26.2 million, or $0.46 per diluted share, an increase of 30.4% for the fourth quarter ended December 31, 2007, as compared to $20.1 million, or $0.35 per diluted share reported in the corresponding period of 2006.

Total revenue of HealthSpring, for the fourth quarter of 2007, has increased 39.6% to $468.48 million from $335.67 million for the corresponding quarter in 2006.

The company has posted full-year 2007 net income of $86.46 million, up 7% as against $80.36 million for the comparable period of 2006. Its diluted earnings per share for year ended December 31, 2007 increased to $1.51 from $1.44 reported in corresponding period in 2006.

Total revenue of the company for the full year ended December 31, 2007, is $1.57 million, representing 20.3% increase from the total revenues of $1.38 million reported for the corresponding period of 2006.

Herb Fritch, chairman, president, and CEO of HealthSpring, said: We have responded to the challenges of 2007 and have strong positive momentum entering 2008. We continued throughout the year to seek stronger physician engagements, particularly in our Tennessee and Alabama markets.

And, our LivingWell Health Centers began to deliver anticipated benefits to our operations, demonstrating positive impacts on quality of care, member retention, and members’ risk scores.