FPA MEDICAL MANAGEMENT: To Make Cuts; Denies Wall Street Journal Report
FPA Medical Management Inc. is planning to sell some assets as it moves to "make deeper cost reductions," the Wall Street Journal reports. "The cash-strapped physician-management company" also is continuing negotiations with its creditors about "modify[ing] existing debt agreements and obtain[ing] new financing." The company also is expected to name today Thomas Allison, "a partner of Arthur Andersen LLP's Corporate Recovery Practice," as its new CFO. Allison will replace Douglas Kerner, who held the position for four months (Biddle, 6/22). FPA refuted Friday a Wall Street Journal article that reported it was not paying some of its doctors. In a statement, the San Diego-based company denied that it was not paying some of its doctors in California and other states, although it did admit it was "behind in some payments." FPA said it "was making payments as cash flows allowed," the San Diego Daily Transcript reports (6/19). Click here for past California Healthline coverage of FPA's financial woes.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.