MERCY HOSPITALS: Merger With Sacramento Doctors Fails
A plan by Sacramento-area doctors "to merge their practices with Mercy hospitals has fallen through," the Sacramento Bee reports. The failed merger could leave many of the doctors' 37,000 patients -- "all of whom have Health Net medical coverage" -- scrambling to find new doctors or switch health plans. The 27 physicians worked for FPA Medical Management Inc., but the physician-management company filed for bankruptcy in July, "prompting most of the ... physicians to talk with the Mercy network about merging their practices with those hospitals." Winni Loesch, medical director for FPA in Sacramento, said merger plans collapsed in late September "after Mercy decided it did not have enough money to bring so many doctors on board at one." As a result, only ten doctors will join Mercy, leaving the rest "to join other local medical groups, go into private practice or leave the area." Health Net officials said yesterday it was unclear how many of the 37,000 members would be affected, but they would "have a better idea later this week when" all the doctors could be contacted (Young, 10/6).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.