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October 18, 1995| Times Staff and Wire Reports

Foundation Health Picked for Medi-Cal Contract: The health maintenance organization contract has projected annual revenue of up to $600 million. Rancho Cordova, Calif.-based Foundation Health was selected to be the "mainstream" health maintenance organization for Medicaid beneficiaries in Los Angeles, Contra Costa and Tulare counties. The contract is part of a multiyear mandatory managed-care program for beneficiaries of Medi-Cal, California's version of Medicaid. The three counties have a total of nearly 1.8 million eligible beneficiaries. Foundation Health will share the membership with a local government managed-care initiative in each county.

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