themselves or through private insurers, Foster Medical's revenues came primarily from Medicare, the largest public health insurance program in the United States. A change in Medicare in 1986 effectively cut Foster Medical 's charges for Medicare patients by 18%. Foster Medical was not able to respond successfully to this change, and in 1987, Avon's management recommended to the board that it review Avon's commitment to the health care industry. The board concluded that Foster Medical, Mediplex, and Retirement…
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