FOUNDATION HEALTH: Shares Drop On News Of High Health Cost Projections
Woodland Hills-based Foundation Health Systems Inc. saw its share price drop 23% yesterday after the managed care company "said higher-than-expected medical costs will cause earning to fall short of forecasts." The company has been informing investment analysts that "it costs more to pay the medical expenses of the more than 6 million people the company insures than it had previously forecast." Foundation shares closed at $7 yesterday, down $1.88 from the previous day (Bloomberg News/Los Angeles Times, 10/9).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.