BUFFALO, N.Y.-Coastal Healthcare Group, the Durham, N.C.-based physician management company, announced a letter of intent to acquire Better Health Plan, a Medicaid managed-care plan based in Buffalo. Terms of the agreement weren't disclosed. Better Health Plan now contracts with 1,000 physicians and provides care to more than 13,000 Medicaid recipients. The acquisition presents significant growth opportunities for Better Health, said Steven M. Scott, M.D., the plan's president and chief executive officer. New York state law requires at least half of the state's 2.5 million Medicaid recipients to be enrolled in managed-care plans by 1997.
TRENTON, N.J.-Foundation Health Corp., the Rancho Cordova, Calif.-based managed-care company, said its government contracting subsidiary has won a contract to assist New Jersey's Department of Human Services in enrolling some 500,000 Medicaid recipients in managed-care plans. The 27-month contract, valued at $11.6 million, makes Foundation Health Federal Services the state's health benefits coordinator. The program is similar to a managed-care initiative in Massachusetts, where Foundation Health Federal Services provides outreach, education and enrollment services to Medicaid eligibles, according to Foundation officials.