First Option Health Plan

First Option Health Plan was a physician-owned health maintenance organization (HMO) headquartered in Red Bank, New Jersey. Established in 1994, the company provided managed care services and health insurance products to nearly 300,000 members throughout New Jersey. In 1997, the company was acquired by Foundation Health Systems (FHS) for approximately $51.7 million as part of a strategic expansion into the Northeast United States. Following the acquisition, First Option was integrated into Physicians Health Services and eventually rebranded as Health Net of New Jersey. The company's operations were focused on delivering comprehensive healthcare coverage through a network of participating doctors and hospitals. It played a significant role in the consolidation of the regional insurance market during the late 1990s.