June 1999 Bulletin

California seeks PPMC agreement with MedPartners

MedPartners, Inc., and the state of California are trying to hammer out a definitive agreement outlining steps so their financially troubled MedPartners Provider Network (MPN), a physicians practice management company, can make an orderly exit from the state without disrupting patient care.

California health insurers and hospitals agreed to provide $50 million in loans and deferred payments to sustain MPN. However, the arrangements that were to be finalized on April 24 by all parties are still up in the air.

What's currently on the negotiation table involves Medpartners turning over the management of MPN's 117 clinics that employs 1,000 physicians to the state until the practices are sold. The agreement aims to provide uninterrupted medical services to 1.3 million Californians and to provide payment to physicians.

In March, the state seized control of MPN, appointing a conservator who put the company in Chapter 11 bankruptcy reorganization to prevent a company shutdown that would effect health plan enrollees.

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