Headquarters: La Habra, Calif.
What it is: An integrated, capitated provider consisting of Friendly Hills Medical Group, with 160 physicians; the Friendly Hills Regional Medical Center in La Habra, a 274-bed general acute-care hospital; a dialysis unit; 14 office sites in north Orange County and east Los Angeles County; home-care and tertiary-care services.
What it does: Contracts at full risk with more than 24 HMOs and accepts fee-for-service, Medicare, independent practice association and PPO patients. Serves more than 100,000 patients.
1968: Created by four family practice physicians.
1970s and 1980s: Evolves into an integrated, for-profit network.
1991: Applies for tax-exempt status.
January 1993: Becomes the first physician-developed integrated healthcare system approved by the Internal Revenue Service, subject to community-benefit standards established for hospitals in 1969.
July 1993: Creates a partnership with Loma Linda (Calif.) University Medical Center and obtains $125 million in tax-free financing to complete its acquisition of the assets of 160-physician Friendly Hills Medical Group.