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Sacramento – One in 10 California physician groups that capitate directly with HMOs are expected to close this year, according to a report from the accounting firm of PricewaterhouseCoopers. At least 16 already have closed, part of the more than 100 physician groups in California that have closed or gone bankrupt in the past three years, according to the report released at a meeting on physician group failures hosted by the California Medical Assn.’s CMA Foundation.
Speakers at the meeting blamed the problems on low capitation rates, assumption of money-losing insurance risk and some poor business decisions. Listening were doctors, legislators, HMO representatives and media from across the state. “It’s time to push the control-alt-delete button and start over again,” said Executive Vice President Jack Lewin, MD.
Part of the problem, some speakers said, is that many physicians don’t care to get into the details of practice management.
Source: AMNews
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planetc1.com-news @ 10:46 | Article ID: 937237610
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