MEDPARTNERS: Negotiations with State Continue
As talks between state officials and MedPartners Inc. continue regarding the state takeover of the company's California network, the two sides today "square off in court," the Orange County Register reports. While accounts differ "as to how serious the talks are and whether a deal is imminent," most reports say the company "would have to post a bond or cash settlement to ensure reimbursement for patient care and payment of creditors in the bankruptcy" of MedPartners Provider Network. In return, the parent company would regain control of the California network, allowing it to sell the plan and exit the state (Crabtree, 4/8). The Los Angeles Times reports that as of late Thursday, "an agreement was reportedly close but not complete." Sources said sticking points included concerns that the California plan was improperly "siphoning" funds to the parent company and that MedPartners would promise not to "turn around and file for bankruptcy protections in another state" if released from bankruptcy in California (Bernstein, 4/9).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.