FHP to Help Firm Start Elderly Care Program

FHP International Inc., the nation’s largest provider of managed care services to Medicare recipients, said Tuesday that it has signed a consulting contract to help a Missouri competitor start its own elderly care program.

The Fountain Valley health maintenance organization would not disclose the value of its contract with GenCare Health Systems Inc. in St. Louis. FHP soon will be sending a team of employees to GenCare headquarters, said FHP spokeswoman Ria Carlson.

Banking on its successful Senior Plan Medicare program, FHP has been looking to share its expertise with other HMOs in areas where it is not cost effective for FHP to establish its own health plan for seniors.

The consulting contract is the second such pact that FHP has signed. The first deal, arranged 18 months ago, helped Greater Atlantic Health Services Inc. in Philadelphia establish a senior plan.

Gaining popularity quickly, senior plans allow elderly Medicare recipients to enroll in managed care programs under contract with the federal government. By receiving Medicare funds directly from the federal government, HMOs can offer full coverage to those who otherwise would pay for medical care on a more expensive, treatment-by-treatment basis--or so-called fee-for-services basis.

FHP also announced on Tuesday that it has joined an effort by Southern California Edison to promote energy-efficient lighting under the utility’s so-called Green Lights program. The U.S. Environmental Protection Agency is also sponsoring the program.

The company said that under an agreement with the utility, it will upgrade lighting at most of its buildings. The project is expected to save FHP about $800,000 a year.