HEALTH

Homedco Contract: With all the talk these days of health care reform, it is not surprising that managed-care companies, which deliver health care at decreased costs, are the new darlings of the medical industry.

The advantages of managed care in proposed health care reform is not lost on Homedco Group Inc., a Fountain Valley home health-care firm. The company, which leases respiratory and intravenous equipment and supplies home nursing services, has been increasing its number of contracts with managed-care operations at a steady clip.

The latest deal was signed two weeks ago with Kaiser Permanente of Northern California. Although terms of the agreement were not disclosed, Homedco spokeswoman Suki Shattuck confirmed that it is a “multimillion contract.”

Homedco, with 17 of its 215 branch offices in Northern California, will not provide nurses in the two-year contract, but it will supply all the equipment necessary for Kaiser nurses to treat patients at home, Shattuck said.

For several years, Homedco has attempted to sign up more managed-care companies, selling them on the premise that home treatment is among the most cost-effective ways to treat most patients.

Currently, about a third of Homedco’s revenue comes from managed-care contracts, including those with Kaiser Permanente of Southern California and PacifiCare Health Systems Inc. of Cypress, another large health-maintenance organization.