FHP Expecting Quarterly Loss
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Blaming unexpected costs of new operations and the doubtful collection of bills, FHP International Corp., a Fountain Valley health care provider, said Monday that it expects to report a loss for its fourth quarter, which ended June 30.
Robert Gumbiner, chairman and chief executive, said that while the company had not completed tallying its results, it had already projected a quarterly deficit. Gumbiner said, however, that the company still expects to report a profit for its 1987 fiscal year. For the first nine months of the year, profits were $8.7 million and revenues were $269.7 million.
Gumbiner attributed the projected quarterly loss to the company’s recent, rapid expansion which forced “a high level of start-up expenses . . . that should not reoccur in the quarters to come.”
In addition, he said the company expects its new Medicare risk programs to become profitable and generate increased revenue.
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