FOUNDATION HEALTH: Takes $50 Million Second-Quarter Charge
Woodland Hills-based Foundation Health Systems Inc., one of California's largest managed care companies, announced it "will take a $50-million charge in the second quarter on property" it leased to the bankrupt FPA Medical Management Inc. Bloomberg News/Los Angeles Times reports that in 1996 Foundation Health Corp., "one of the companies that formed the current Foundation Health, sold some doctors' groups to FPA while retaining ownership of related medical clinics" that it leased to the San Diego-based physician management company. Although Foundation will announce second-quarter earnings next Tuesday, before-charge profits "match the 26 cents a diluted share forecast in a survey by First Call Corp." (8/6).
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