FPA MEDICAL MANAGEMENT: Dropped By One Of Its HMOs
Financially beleaguered FPA Medical Management Inc. announced yesterday that "a Florida health maintenance organization has canceled its contract with" the San Diego-based physician-management company. An FPA spokesperson, however, could not provide the name of the HMO or the number of patients involved, the San Diego Union-Tribune reports.
The pullout is the latest setback for FPA, which already faces mounting debt and pressure from investors to refinance. Company spokesperson Steven Seiler said yesterday that talks with investors regarding loan agreements were nearing completion. "They are crossing the T's and dotting the I's," he said. But Seiler said "there is no guarantee that agreements will be reached before the company is scheduled to run out of money in early July." FPA said yesterday it does not presently plan to file for bankruptcy, but will not rule out the possibility of doing so later this year "as part of its arrangement with lenders" (Rose, 6/23). Click here for past California Healthline coverage of FPA's troubles.