The Pentagon has awarded Foundation Health Federal Services a $1.8 billion five-year contract to provide managed healthcare services to military family members and retirees in parts of the South and Southwest.
Beginning Nov. 1, Foundation will cover 590,000 beneficiaries of the Civilian Health and Medical Program of the Uniformed Services, or CHAMPUS, in Arkansas, Louisiana, Oklahoma and Texas.
It is the second such managed-care contract Foundation has won under the Defense Department's Tricare managed-care program. In March, the Rancho Cordova, Calif.-based managed-care firm began covering 235,000 military beneficiaries in Oregon and Washington under a $651 million contract.
It is also the third of seven Tricare contracts the Defense Department expects to award before Oct. 1, 1996.