Foundation Health Corp. announced it is in preliminary discussions to sell its physician operations. The HMO did not identify the potential buyers.
Foundation manages 320 physicians through two affiliated medical groups: Foundation Health Medical Group in California and Thomas-Davis Medical Centers in Arizona.
Foundation, based in Rancho Cordova, Calif., is one of several HMOs that have considered selling or have sold their medical groups in the past year (May 20, p. 104).
Earlier this year, Foundation announced it would close two small primary-care centers in Northern California.
"In today's environment, we are exploring whether we can best meet our strategic objectives by contracting with organizations that specialize in providing physician services and focusing our resources on the company's traditional managed-care operations," said Daniel D. Crowley, president and chief executive officer.
Any transaction would include long-term provider contracts that would allow the HMO's enrollees in Arizona and California to continue to receive care from the physicians, Foundation said.