Foundation Health Corp. completes acquisition of Southern Colorado health plan effective today.RANCHO CORDOVA, Calif.--(BUSINESS WIRE)--Nov. 10, 1994-- Foundation Health Corp. (NYSE NYSE See: New York Stock Exchange :FH) announced that effective Nov. 10 it has completed its previously announced acquisition of privately held Southern Colorado Health Plan (SCHP SCHP South Carolina Highway Patrol SCHP Scholarum Piarum (Roman Catholic religious order) SCHP Solid Copper Hollow Point (bullets) SCHP Clerics Regular of the Pious Schools, Piarist Fathers ), a 7,500-member health maintenance organization (HMO HMO health maintenance organization. HMO n. A corporation that is financed by insurance premiums and has member physicians and professional staff who provide curative and preventive medicine within certain financial, ) based in Pueblo, Colo. SCHP's HMO service area covers five Colorado counties including Pueblo, Colorado Springs and Canon City. In addition to its HMO operations, the company provides managed care services to individuals covered by other funding arrangements. Last week, Foundation Health completed a merger transaction with Arizona-based Intergroup Healthcare Corp. and its majority shareholder, Thomas-Davis Medical Centers P.C. As part of the transaction, Foundation acquired GEM Insurance Company which provides insured PPO PPO abbr. preferred provider organization PPO Managed care Preferred provider organization, see there Infectious disease Pleuropneumonia-like organism, see there coverage to an additional 7,800 Colorado residents. "We look forward to the opportunities this acquisition of Southern Colorado Health Plan creates," said Daniel D. Crowley, president and chief executive officer of Foundation Health Corp. "This move allows us to cost-effectively enter the Colorado managed care marketplace, expand SCHP's product line and service area, and cross-sell our managed care specialty services including vision, dental, behavioral health and pharmaceutical services." "With this merger, we can expand our client base in Colorado and continue to provide excellent service to our members and providers," said Byron Cairns Cairns, city (1991 pop. 64,463), Queensland, NE Australia, on Trinity Bay. It is a principal sugar port of Australia; lumber and other agricultural products are also exported. The city's proximity to the Great Barrier Reef has made it a tourist center. , president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. of SCHP. Foundation Health will issue approximately 242,000 shares of its common stock in connection with the acquisition. Foundation Health Corp. including SCHP, Intergroup and Miami-based CareFlorida Health Systems Inc., now form one of the nation's leading managed care organizations with approximately 1 million HMO and insured PPO members in 10 states and the United Kingdom. Through its subsidiaries, Foundation offers group, individual, Medicare and Medicaid Medicare and Medicaid U.S. government programs in effect since 1966. Medicare covers most people 65 or older and those with long-term disabilities. Part A, a hospital insurance plan, also pays for home health visits and hospice care. HMO plans; government sponsored managed care programs; administrative services for self-funded benefits programs and medical groups; and managed care products related to workers' compensation, behavioral health, dental, vision and prescription drugs. CONTACT: Foundation Health Corp.
Jeffrey L. Elder, 916/631-5381
Kurt D. Davis, 916/631-5288
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