FPA MEDICAL MANAGEMENT: More Woes From State And Creditors
FPA Medical Management Inc. "saw problems mount on two fronts" yesterday, the San Diego Union-Tribune reports. The "troubled" physician-management company "failed to make a required $2.6 million interest payment and was slapped with an order from state regulators demanding that it end its nonpayment of claims to doctors." The company said the "payment due on $81 million in bond debt was blocked by the company's bankers, who are owed $315 million" (Rose, 7/16). Bloomberg News/Los Angeles Times reports that the state issued a "cease-and-desist order" to FPA Medical Management of California, one of FPA's 100 units nationwide, "demanding that it address a failure to reimburse providers and raise its net equity to meet state standards" (7/16). The state wants FPA to come up with a plan within 10 days for repaying its doctors, and wants the net equity problems "rectified within 60 days." FPA Chair Dr. Sol Lizerbram resigned yesterday, and was replaced by CEO Dr. Steven Dresnick (Union-Tribune, 7/16). Click FPA to read about the company's financial straits.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.