DOWNEY HOSPITAL: To Sever Ties With Doctors’ Group
Downey Community Hospital officials said yesterday that the "hospital will sell its 50% ownership in CareMore Medical Management Company, parent of a doctors' group that sends patients to the hospital." The Long Beach Press-Telegram reports that Downey will sell its interest in the group "back to the company when a five-year contract between the two expires May 31." According Dr. Sheldon Zinberg, chair of CareMore Medical Group, "[s]ale of the shares ... is expected to make the doctors' group 'more flexible'" and "enable the doctors to expand their services into neighboring communities." He said the specifics of the agreement -- "such as where CareMore will get the money to purchase the shares, the duration of their new agreement with the hospital and in which cities the group's expansion will take place -- are still being worked out." However, officials from both parties said neither "is in bad financial shape" and that "sale of the shares will not affect the quality of health care at the hospital." Zinberg said, "There will be no interruption of patient care whatsoever" (Douglas, 3/13).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.