FPA MEDICAL MANAGEMENT: CMA Files Suit Against Four Executives
The California Medical Association has filed suit against four former executives of the bankrupt FPA Medical Management of California, charging that under their leadership, FPA "failed to demonstrate fiscal soundness, maintain adequate financial reserves [or] invest its assets in a prudent manner." Named in the suit are former FPA Presidents Sol Lizerbram, Stephen Dresnick and Seth Flam, and former CFO Steven Lash. The CMA suit also charges that FPA's failure to comply with the state Department of Corporations' program to restore the physician management firm to financial health "was illegal and a breach of its fiduciary duty" (CMA release, 2/3). FPA spokesperson Ann Julsen said the company had no comment on the case (CHL interview, 2/4). Click here for past coverage of this issue.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.