<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM CONSOLIDATED
BALANCE SHEETS AND CONSOLIDATED STATEMENTS OF INCOME.
</LEGEND>
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          DEC-31-1997
<PERIOD-START>                             JAN-01-1997
<PERIOD-END>                               MAR-31-1997<F1>
<CASH>                                         204,865
<SECURITIES>                                   377,819
<RECEIVABLES>                                  109,136
<ALLOWANCES>                                  (10,313)
<INVENTORY>                                          0
<CURRENT-ASSETS>                               769,655
<PP&E>                                         179,000
<DEPRECIATION>                               (106,783)
<TOTAL-ASSETS>                               1,236,103
<CURRENT-LIABILITIES>                          436,611
<BONDS>                                        409,800
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                            51
<OTHER-SE>                                     388,156
<TOTAL-LIABILITY-AND-EQUITY>                 1,236,103
<SALES>                                              0
<TOTAL-REVENUES>                               850,404<F2>
<CGS>                                                0
<TOTAL-COSTS>                                  704,071<F3>
<OTHER-EXPENSES>                                98,854
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                               6,316
<INCOME-PRETAX>                                 41,163
<INCOME-TAX>                                    16,589
<INCOME-CONTINUING>                             24,572<F4>
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                    24,572
<EPS-PRIMARY>                                      .51
<EPS-DILUTED>                                      .51
<FN>
<F1>INFORMATION PRESENTED IN THIS FINANCIAL DATA SCHEDULE DOES NOT INCLUDE THE 
FINANCIAL POSITION OR RESULTS OF OPERATIONS OF FOUNDATION HEALTH CORPORATION, AS
THE COMPANIES WERE NOT MERGED AS OF MARCH 31, 1997.
<F2>INCLUDES $9,439 K INVESTMENT INCOME
<F3>INCLUDES HEALTH CARE EXPENSES ONLY
<F4>INCLUDES $2,000 OF MINORITY INTEREST IN GAIN OF SUBSIDIARY
</FN>