The California HealthCare Foundation (CHCF) today announced that effective January 5, 2001, it completed monetization of 53.4 million shares of WellPoint Health Networks Inc. (NYSE:WLP) common stock which it received as part of the 1996 conversion of Blue Cross of California to for-profit status and merger with WellPoint. In connection with the 1996 conversion, two charitable foundations were created. CHCF received approximately 80% of WellPoint's outstanding shares and The California Endowment (TCE) received $800 million in cash. In four secondary offerings from November 1996 to June 1999, CHCF sold about 49 million shares generating net proceeds of $2.6 billion. CHCF's remaining 4.4 million shares were sold gradually in the open market over the last few months, raising an additional $438 million in net proceeds.

Under terms of the conversion agreements, the bulk of the proceeds, totaling a net $2.5 billion, were transferred or are earmarked for transfer to TCE. With the completion of the stock sales, CHCF's exclusive focus becomes grant making and asset management in support of its philanthropic mission. As a result of strategic management of its portfolio, CHCF has an endowment currently valued at greater than $800 million.

The two foundations have the same mission: to expand access to affordable, quality health care for underserved individuals and communities and to promote fundamental improvements in the health status of the people of California. TCE primarily funds grants to nonprofit and government organizations that directly benefit the health and well being of Californians. CHCF funds direct subsidies for care, as well as research, model programs, educational forums, and online and print publications aimed at improving the way the health care system works for the people of California.