Foundation Health Corp.: The Sacramento-area health care provider said Thursday that it has acquired two Orange County workers' compensation service companies with more than 240 employees.
Foundation Health, based in the Sacramento suburb of Rancho Cordova, has 4,000 employees and last year had revenue of $1.5 billion. It agreed to buy Reviewco and the Noetics Group, two affiliated companies based in Irvine. Terms were not disclosed.
Reviewco, which has 100 employees, monitors bills from health care providers to weed out possible workers' compensation fraud, reduce service costs and eliminate billing errors. The Noetics Group, with 140 employees, helps administer workers' compensation plans.
Reviewco and the Noetics Group had combined revenue of about $20 million in 1993. Kurt Davis, a spokesman for Foundation Health, said the cost-cutting services that the two companies provide are in such high demand that the acquisition made sense for his company.