MEDPARTNERS: Reaches Deal With CMA
After three weeks of negotiations, the California Medical Association has reached an agreement with Medpartners Inc., with the company agreeing to place $12 million in a special account to pay physicians who contract with the MedPartners Provider Network. According to a CMA release, the deal ensures that once MedPartners-affiliated medical groups receive funds from the account, they will "pay physicians within two days for all fully adjudicated claims." An additional $12 million will become available June 4, provided that medical groups receive timely capitation payments from the provider network. Physicians, physician groups, medical service providers, laboratories, specialists, sub-specialists and other providers are eligible for the MedPartners funds. CMA Executive Vice President Dr. Jack Lewin said, "We expect that this agreement will help solve short-term cash flow problems for many physicians. It does not address the long-term problems concerning MedPartners and the ultimate issue of whether there are enough funds available to pay all existing unpaid and future claims. These issues will be addressed in the current negotiations over a larger Definitive Agreement" (CMA release, 5/13).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.