FHP Gives Wider Choice to Members : Health: Contracts are signed to permit the use of two private hospitals and physicians affiliated with them.

FHP International Corp. said Wednesday that it will bring to Orange County an option already offered at its other locations: the opportunity for members to use private physicians and hospitals.

The Fountain Valley-based health maintenance organization signed contracts with St. Joseph Hospital in Orange and Mission Hospital Regional Medical Center in Mission Viejo, adding a total of 370 private physicians to its repertoire.

FHP, which claims 108,400 members in Orange County, says patients here can now choose between the private hospitals or FHP Hospital in Fountain Valley. Patients may visit participating private physicians affiliated with the hospitals in Orange or Mission Viejo, or doctors at the county’s seven FHP medical centers.

FHP has similar primary-care contracts with 61 hospitals throughout Southern California and the Southwest. With a total of 690,000 members, the company has hospital contracts as well as FHP-operated medical centers in New Mexico, Arizona, Utah and Guam.

Fountain Valley’s FHP Hospital is the only hospital both owned and operated by the company, although FHP is building another such hospital in Salt Lake City.

“We decided that we could further penetrate the Orange County market by increasing points of access for our members,” said Jack Massimino, executive vice president and chief operating officer.

Massimino said the company hopes to boost membership by widening its hospital presence beyond Fountain Valley. “It would take a considerable membership increase to support building another FHP hospital here,” he said. “This allows us to expand through existing hospitals.”

The company’s growth has slowed recently after a five-year spurt during which its membership more than doubled. Last November, FHP laid off 80 corporate employees in Fountain Valley and Long Beach.

Bob Mann, vice president of finance for Mission Hospital, said the contract may encourage more South County employees to sign up for FHP if it is offered by their employers.

“A pregnant woman might not want to have to drive all the way to Fountain Valley when she goes into labor,” Mann said. “This arrangement is exciting for both us and FHP. We’ll get more patients, and they’ll get more members.”