FIRST OPTION: CONTRACT ANGERS PATIENTS, DOCTORS

      First Option Health Plan's "attempt to cut the pay of
 anesthesiologists by 20% has resulted in canceled surgery for
 many patients in North Jersey, angering doctors and state health
 officials," the Newark Star-Ledger reports.  Many
 anesthesiologists have refused to accept the fee cuts and have
 not signed contracts with the health plan, which was recently
 taken over by California-based Foundation Health Systems Inc.. 
 As a result, First Option "canceled scheduled surgery for many
 plan participants at several New Jersey hospitals recently,"
 including a patient with a "dangerous aneurysm" and one with a
 painful anal fissure.  A spokesperson for Foundation Health
 "acknowledged" that the "cancellations were part of a company
 plan to get New Jersey anesthesiologists to accept a cut in
 fees."   Dr. Carl Restivo of the Medical Society of New Jersey,
 said, "This is an outrageous situation.  This company is playing
 Russian roulette with scalpels and anesthesia equipment and
 patients' lives."  Star Ledger reports that "[i]f the matter is
 not resolved, both the State Society of Anesthesiologists and the
 state Medical Society have threatened legal action."  
      SEARCHING FOR A SOLUTION
      The Star Ledger reports that "[s]ome of First Option
 clients' operations were later rescheduled, but only after long
 delays in which patients were forced to find new doctors and
 hospitals."  Senior state health officials have given First
 Option "until today to explain how the company plans to change
 its policies to come into compliance with state laws." 
 Foundation spokesperson Lisa Haines said yesterday, "We have been
 working on the situation since January 20.  We feel as though we
 have resolved the issue and will communicate that to the
 department tomorrow.  We have reached agreements with the
 participating anesthesiologists."  
      ATTEMPT AT PRECEDENT
      Some New Jersey doctors are worried "that if successful,
 First Option and other insurance companies could use the same
 strategy to force doctors in other specialties to accept pay
 cuts."   In a letter to state Health Commissioner Len Fishman,
 Dr. Erwin Moss, executive medical director of the New Jersey
 State Society of Anesthesiologists, said that First Option is
 "using patients as pawns in a power play ... The anxiety and
 stress caused by having their operations canceled the day of
 surgery is cruel and unusual punishment" (Scott, 1/22).