Homedco to Provide Services for Foundation Health Customers

Homedco Group Inc. said Tuesday that it has signed a three-year contract with Foundation Health to provide home health care services to members enrolled in Foundation Health’s programs in nine states.

The value of the contract amounts to 3% to 4% of Foundation Health’s annual revenue, said Lawrence H. Smallen, Homedco’s chief financial officer. Based on Foundation Health’s financial statements, revenue would range from $15 million to $20 million a year.

Homedco, which is in the process of merging with Abbey Healthcare Group Inc. in Costa Mesa, will serve Foundation Health members in Alabama, Arizona, California, Colorado, Florida, Louisiana, Oklahoma, Texas and Utah.