GREATER PACIFIC HMO: DOC Moves to Revoke License
The state Department of Corporations yesterday "moved to revoke Irvine-based Greater Pacific HMO Inc.'s license, saying the health plan's financial problems had become too severe to remain in business." The department assumed control of the HMO in June after an audit showed it was more than $770,000 in the red, and had fallen behind in payments to patients and providers. The plan notified its 2,400 enrollees that their coverage would be terminated as of Sept. 12. According to Debra Denton, an attorney with DOC's health plan enforcement division, only 17 enrollees have not been placed with other plans. She said the "agency's decision to pursue revoking the license came after a court-appointed conservator confirmed the severity of Greater Pacific's troubles" (Fields, Los Angeles Times, 9/24).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.