Foundation Health and Sutter Health Announce Comprehensive Multi-Year Agreements

Foundation Health and Sutter Health today announced the signing of a letter of intent to enter into comprehensive multi-year agreements, significantly expanding the provider networks in Northern California. The agreements will enhance the efforts to offer high-quality, accessible, and competitively priced health care coverage to approximately 40,000 of Foundation Health's 300,000 members in Northern California. These agreements will have a value of approximately $40 million in the first year and have options for renewal.

Key Takeaways:

• The agreements will cover most Foundation Health products, including HMO, PPO, Point-of-Service, Medicare, Medi-Cal, workers' compensation, and CHAMPUS.
• Sutter Health-affiliated physician groups included in the agreements are Sutter Medical Group, Sutter West Medical Group, Sutter North Medical Group, Camino Healthcare, Gould Sutter Medical Foundation, Palo Alto Medical Foundation, and the Greater Placer Physicians IPA.
• Sutter facilities to be included in the agreements are Camino Healthcare, Delta Memorial Hospital, Sutter Lakeside Hospital, Oak Valley Hospital, Novato Community Hospital, Community Hospital of Santa Rosa, Sutter Amador Hospital, Sutter Coast Hospital, Auburn Faith Community Hospital, and 9 others.
• The agreements will have a value of approximately $40 million in the first year and have options for renewal.
• The multi-year agreements will cover approximately 40,000 of Foundation Health's 300,000 members in Northern California.
• The agreements are not exclusive for either party.
• Foundation Health Corporation is one of the nation's largest publicly held managed care organizations with operations in 17 states and the United Kingdom.
• Sutter Health is a not-for-profit Northern California integrated health system with headquarters in Sacramento, CA.

Statistics:

• Approximately 40,000 of Foundation Health's 300,000 members in Northern California to be covered by the agreements.
• Value of agreements in the first year: approximately $40 million.
• Number of Sutter Health-affiliated physician groups included in the agreements: 7.
• Number of Sutter facilities included in the agreements: 11.
• Foundation Health products covered by the agreements: HMO, PPO, Point-of-Service, Medicare, Medi-Cal, workers' compensation, and CHAMPUS.

Sources:

• Foundation Health press release, July 10, 1995, via Business Wire.
• Sutter Health Corporation, "About Sutter Health."