WESTERN HEALTH ADVANTAGE: HMO TO ENTER CALIFORNIA MARKET

      Western Health Advantage, a new HMO "owned and directed by
 local health care providers," is about to enter the commercial
 market in Sacramento.  The HMO, which was granted approval in
 January to serve the Medi-Cal market, won state approval May 1 to
 begin marketing itself in Sacramento, Yolo and Solano counties,
 The nonprofit HMO is composed of 800 physicians and nine
 hospitals, including Mercy Healthcare Sacramento, University of
 California at Davis Health System and NorthBay Healthcare System
 in Fairfield.  
      VIRTUES:  Western Health's organizers are touting it as a
 "'virtual' network with an emphasis on choice and local decision-
 making."  COO Garry Maisel said, "We are composed of a number of
 distinct entities, but form one network when it comes to care
 options.  Most complaints to employers by employees about their
 health care have to do with access.  We are going to be vastly
 different from other plans on this."  Western members will not be
 restricted to specialists in the same medical group as their
 primary care physician; they will have the option of seeking care
 from all network providers once they receive a referral.
      WATCH US:  SACRAMENTO BUSINESS JOURNAL reports that the
 venture, which was "[a]lmost three years in the making," has been
 "watched closely" because is it being "headed" by Tom Elkin, who
 "played a pivotal role in bringing down the cost of health
 insurance" in his former position with the California Public
 Employees' Retirement System.  Elkin said the plan will give
 employers an "alternative to the current version of managed
 care."  While the new HMO is not expected to seriously shake up
 the Sacramento market in the short run, a local health care
 consultant said that with "sufficient financial backing," the HMO
 could affect the market "significantly" (Robertson, 5/5).