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Doctor Groups in State Face Crisis

California faces "epidemic" of bankruptcies, medical association official says. Dozens of groups expect to go out of business by end of the year, according to figures to be released today by the California Medical Assn.

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California faces “epidemic” of bankruptcies, medical association official says. Dozens of groups expect to go out of business by end of the year, according to figures to be released today by the California Medical Assn.

2 Dozen Doctor Groups in State Near Failure
The physician groups that form the backbone of managed care in California are in crisis, some hemorrhaging as much as $500,000 per month, and at least two dozen are expected to go out of business between now and the end of the year, according to figures to be released today by the California Medical Assn.

Already, 15 such organizations, including one last week in Ventura County, have gone under this year, bringing the total since 1996 to 115. Two of the largest, MedPartners Provider Network and FPA Medical Management, represented 1.5 million patients between them.

“We face an epidemic of physician organization bankruptcies unless we fix a very broken system,” said CMA executive vice president Jack Lewin.

The plight of California doctor groups has national implications, as physicians across the country weigh whether to set up similar structures. In Texas, where physician groups have been an increasing presence during the last several years, several are under financial strain or have gone bankrupt. And in New York, doctors are experimenting with setting up physician groups as a way to wrest control of patient care away from the health plans.

Source: L.A. Times

planetc1.com-news @ 08:35 | Article ID: 936279357

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