business
California insurer drops health plan-acquired IPA
NEWS IN BRIEF — Posted Nov. 14, 2011
Blue Shield of California is shunning a large independent practice association over its pending acquisition by a for-profit company.
Monarch HealthCare, which has 2,300 physician members in Southern California, turned over the IPA's management to UnitedHealth Group subsidiary Optum during the summer. Now Blue Shield of California, one of the state's largest insurers with 3.3 million members, has said it won't contract with Monarch.
"The issue is simply that if Monarch is acquired by United, we would be contributing to United's bottom line," Blue Shield spokesman Steve Shivinsky said in an emailed statement. "Blue Shield of California is a not-for-profit dedicated to providing affordable health care to all Californians. Therefore, it is unacceptable that we would contribute to a for-profit competitor's shareholders."
Shivinsky said Blue Shield would continue working with Monarch through the end of 2011.
In response to questions about Blue Shield's move, Monarch's CEO, Bart Asner, MD, said in a statement, "Our partnership with Optum is about enabling Monarch physicians to do what they do today even better: provide exceptional, cost-effective care to the patients they serve."
Optum's acquisition is not yet finalized, but Optum spokesman Brian Kane said state regulatory approval "is proceeding on a timely basis."
Note: This item originally appeared at http://www.ama-assn.org/amednews/2011/11/14/bibf1114.htm.
