Foundation Health Corp. reported a 51% increase in net income to $35.9 million, or 61 cents per share, for the first quarter ended Sept. 30, up from $23.7 million, or 41 cents per share, in the year-ago quarter. Driven by a 206% increase in revenues from Civilian Health and Medical Program of the Uniformed Services contracts, the Rancho Cordova, Calif.-based company's quarterly revenues rose 42% to $1 billion. As of Sept. 30, Foundation's commercial enrollment grew 25% to 1.5 million, and total enrollment increased 96% to nearly 3.1 million. Foundation and Woodland Hills, Calif.-based Health Systems International plan to merge in January.
Cypress, Calif.-based PacifiCare Health Systems reported a 25% rise in fourth-quarter net income to $38 million, or $1.19 per share, before one-time charges of $59 million relating to the sale of its Florida operations. Year-ago net income was $30.4 million, or 98 cents per share. Revenues for the fourth quarter ended Sept. 30 increased 20% to $1.2 billion. For the year, net income grew 24% to $134 million, or $4.23 per share, before various charges totaling $101 million. That compares with fiscal 1995 net income of $108 million, or $3.62 per share. Year-end revenues rose 24% to $4.6 billion.
Complete Management, a New York-based physician practice management company, has filed a registration statement with the Securities and Exchange Commission to sell 2.5 million shares of common stock and issue $25 million in convertible subordinated debentures. The company said proceeds will be used primarily to fund new acquisitions and for general corporate purposes. The company recently signed a 30-year agreement to manage Tenbroeck Medical Associates, an eight-physician primary-care and internal medicine practice in the Bronx borough of New York. The deal, announced last month, is expected to generate management fees of more than $2 million annually.
Magellan Health Services' net income dropped 20% to $10.2 million, or 31 cents per share, in its fourth quarter ended Sept. 30, from $12.8 million, or 45 cents per share, in the year-ago period. Revenues rose 23% to $348.3 million, mainly because of the company's October 1995 acquisition of a majority stake in Columbia, Md.-based Green Spring Health Services, a managed behavioral-healthcare organization. Atlanta-based Magellan is a behavioral-healthcare company operating 100 facilities. For the year ended Sept. 30, earnings fell 4.2% to $58.7 million, or $1.73 per share, from $61.3 million, or $2.15 per share, in the previous year. Net revenues grew 17% to $1.3 billion, primarily because of the Green Spring acquisition.