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NATIONAL HEALTH CARE SYSTEMS INC., FOUNDATION HEALTH COMPLETE TRANSACTION

 NATIONAL HEALTH CARE SYSTEMS INC., FOUNDATION
 HEALTH COMPLETE TRANSACTION
 LAGUNA NIGUEL, Calif., Dec. 30 /PRNewswire/ -- National Health Care Systems Inc. (NASDAQ: NHCS) announced today that it has merged operations with a wholly owned subsidiary of Foundation Health Corporation (NYSE: FH), a Sacramento health maintenance organization. National Health Care Systems was the parent of DentiCare of California Inc., the state's fourth largest prepaid dental health plan serving approximately 375,000 members.
 Foundation Health acquired all the outstanding shares of NHCS in a tax-free reorganization under which NHCS shareholders will receive $3.30 worth of Foundation Health common stock for each share of NHCS common stock owned. The transaction is valued at approximately $22.8 million and will be accounted for as a pooling of interests. NHCS shareholders will now hold approximately 4.9 percent of Foundation Health Corp. stock.
 The subsidiary will operate from DentiCare's Laguna Niguel location. DentiCare will retain Dr. Carl E. Bozzo as president, Stephen R. Casey as vice president and chief operating officer, and the existing management and staff. The subsidiary will continue to do business as DentiCare of California Inc.
 "This acquisition is consistent with our strategic plan to offer an array of complementary managed health care products to our clients and increase our statewide presence," said Daniel D. Crowley, president and chief executive officer of Foundation. "With the acquisition of DentiCare, we will be able to offer a dental product with our other managed care products. This will be attractive to employers, who prefer to deal with as few vendors as possible for their benefit needs. Additionally, marketing efficiencies will result from the opportunity to cross-sell products to our existing clients," said Crowley.
 "We look forward to the opportunity brought to us by this union," said Bozzo, president of DentiCare. "By combining our provider network of over 3,000 dentists with the resources and experience of Foundation Health, we will create a very attractive menu of managed health care products while providing outstanding service and quality," said Bozzo.
 Foundation Health Corp. administers health care coverage for more than 1.2 million eligible individuals through its HMO, insurance subsidiary, administration of self-funded groups, the CHAMPUS Reform Initiative, a health benefit program for military families in California and Hawaii and a similar program in New Orleans, La.
 -0- 12/30/91
 /CONTACT: Dr. Carl E. Bozzo, president of DentiCare of California Inc., 714-365-8010, ext. 215; or Shannon T. Squyres of Corporate Relations Group, 714-955-1860/
 (NHCS FH) CO: National Health Care Systems Inc.; Foundation Health Corp. ST: California IN: HEA SU: TNM


SE-DM -- LA003 -- 2809 12/30/91 10:17 EST
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Publication:PR Newswire
Date:Dec 30, 1991
Words:433
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