Foundation Health to Buy HMO
From Bloomberg Business News
RANCHO CORDOVA, Calif. —
The health care industry took another step toward consolidation Tuesday as Foundation Health Corp. said it will buy CareFlorida Health Systems Inc. for $250 million in stock.
Foundation Health, a Rancho Cordova-based health maintenance organization with 527,000 members, said it will use the acquisition of privately held CareFlorida to jump-start its planned expansion into Florida, one of the fastest-growing U.S. markets for managed care. Miami-based CareFlorida, also an HMO, provides managed care to about 146,000 members in south Florida.
The transaction will dilute Foundation Health’s earnings by about 5% this year, the company said.
