Foundation Health Says Its Chairman Retired From Board

Foundation Health Systems Inc., one of California’s biggest health insurers, said its chairman, Dr. Malik Hasan, retired from the board March 1.

In August, when Hasan, 60, retired from his job as chief executive, he also said he planned to leave the board of Foundation, the fourth-largest publicly traded U.S. managed-care company.

Hasan, a neurologist, founded one of Foundation’s predecessor companies in 1985. Jay Gellert, 44, hired several years ago by Hasan with the intent of having him run the Woodland Hills-based company, succeeded him as chief executive.

Analysts said Hasan will probably continue to be involved since he owns about 4.3 million shares, or about 4% of the company, according to a Securities and Exchange Commission filing.

“He had built this company but he was getting tired of running a company this size,” said Greg Crawford, a Fox-Pitt, Kelton analyst.

Foundation was formed in 1997 by the $1.34-billion merger of Foundation Health Corp. and Health Systems International Inc., which Hasan headed.

Foundation will report its fourth-quarter earnings today.

Foundation shares rose 6 cents Monday to close at $9.63 on the New York Stock Exchange.