Ontario Medical Management Firm Acquires Contracts of Seven California Medical Groups
Ontario-based North American Medical Management has acquired the contracts of seven medical groups in Los Angeles and Orange counties, giving it control over doctor groups that provide care for 517,000 California patients, the Los Angeles Times reports. The firm already owns nine medical practice associations in San Bernardino and Riverside counties. While terms of the deal were not disclosed, the Times reports that NAMM acquired the contracts from Cerritos-based Medical Pathways Inc. NAMM Chief Executive Rene Moret said the acquisitions were "a good move" for the company and would give them "greater clout" in negotiations with health plans over reimbursement rates. However, some industry officials said NAMM may face challenges in California, where many medical groups have failed partly because of low reimbursements. Also, the Times reports that it may be difficult for NAMM to rise above the "negative perceptions" of its parent company, Nashville, Tenn.-based PhyCor Inc., which filed for bankruptcy protection in January. Dr. William Jessee, president and chief executive of the Medical Group Management Association, said that the outlook for NAMM in California is "worse than [it] would be in other states and overall medical practice expenses rose faster than inflation and the economy at large last year" (White, Los Angeles Times, 3/6).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.