MEDPARTNERS: Davis May Free Network from State Control
The Davis administration is "deeply involved" in talks with MedPartners Inc., the parent company of MedPartners Provider Network, which could be free from state control if the parent company agrees to pay off about $100 million in debts, the Los Angeles Times reports. According to sources, the deal would also require doctors to continue caring for MedPartners patients and HMOs to continue sending members to MedPartners clinics. "We're hoping to avoid the continuation of any bankruptcy proceedings and to develop a business solution to this," said Jim Lott of the Southern California Health Care Association, which is "attempting to broker the deal." MedPartners attorney Ross Stromberg would not say whether the two parties were in negotiations, but the Times reports that other MedPartners sources "have said for weeks that the company was working with the state to resolve the takeover and bankruptcy." The Times reports that any agreement would have to involve the 15 HMOs that send members to MedPartners clinics. After the provider network is shut down, the managed care companies would have to contract directly with the clinics -- a proposal that has "apparently won support from several" HMOs, but not from Eugene Froelich, the state conservator running the network. Froelich would not comment on the deal except to say he was not involved (Bernstein/Maharaj, 4/3).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.