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Foundation to Sell Utah HMO to Altius

July 07, 1999|Bloomberg News

Foundation Health Systems Inc., one of California's largest managed-care companies, plans to sell a tiny Utah health plan to focus on its biggest markets. Foundation, the fourth-largest publicly traded U.S. managed-care company, said it agreed to sell Intergroup of Utah Inc. to closely held managed-care company Altius Health Plans of South Jordan, Utah. Intergroup accounted for just 6,200 of Foundation's more than 6 million members. Terms weren't disclosed. The sale is part of Foundation's plan to shed smaller units so it can focus on its larger health plans in California, Arizona, Florida and the Northeast, as well as on its specialty services subsidiaries and government businesses. "This transaction represents another step in FHS' strategic plan to divest non-core assets," Chief Executive Jay Gellert said in a statement. Altius has about 90,000 members. The sale is expected to close by year's end. Woodland Hills-based Foundation's shares rose 75 cents to close at $16.94 on the New York Stock Exchange.

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