FHP Reports Earnings Hike of 23% for Year

FHP Corp. said net earnings for its fiscal 1986 rose 23% to $9.1 million from $7.4 million. The Fountain Valley-based prepaid medical plan operator said revenue during the year ended June 30 climbed 46% to $264.7 million from $181.2 million a year earlier.

For the fiscal fourth quarter, FHP’s net earnings rose 59% to $2.7 million from $1.7 million. Revenues for the quarter were $75.3 million, up 40% from $53.6 million.

The company, which converted to a for-profit concern last November, held its initial public offering in July, raising $23.6 million for FHP and about $10 million for the FHP Foundation, the charitable trust established as part of the conversion.

One of the oldest health maintenance organizations in the United States, FHP currently has approximately 250,000 members in Southern California, Utah, Arizona, New Mexico and Guam.