HEALTH

Foundation Health Protest Gains Support: The Rancho Cordova, Calif.-based health care company said the General Accounting Office has supported the company’s protest of the Pentagon’s award of a $3.5-billion Pentagon contract to another bidder. In an advisory opinion, the GAO said the Defense Department used a faulty selection process to award an Aetna Life & Casualty Co. unit the right to supply managed health care services for about 840,000 military retirees and dependents in California and Hawaii. The contract supplied about 40% of Foundation Health’s revenue of $746 million last year, said Kurt Davis, a Foundation Health spokesman. Davis said the next step is for the Defense Department to decide whether it will reopen the contract process. Foundation Health previously had said it would cut 500 to 700 jobs during the next six months as a result of the contract loss.