HPHC Plan Unveiled- BWH Bulletin - For and about the People of Brigham and Women's Hospital
HPHC Plan Unveiled- BWH Bulletin - For and about the People of Brigham and Women's Hospital
Skip to contents
March 10, 2000
Browse the archive
Current issue
In This Issue:
HPHC Plan Unveiled
Research community sees opportunity ahead
Staff Survey Action Teams
Nursing Collaborates on Career Development Program
Happy 18th Birthday Ryan
Ramzi Cotran
Obituary
Pike Notes
Free trial MBTA pass
On Thursday, March 2, the state announced a plan to keep Harvard Pilgrim Health Care (HPHC) both non-profit and locally controlled. Announced at a press conference by Massachusetts Attorney General Thomas Reilly, Insurance Commissioner Linda Ruthardt, and Governor Paul Cellucci, the plan, as outlined, would release the HMO from state receivership. The rehabilitation plan needs to be reviewed by the Supreme Judicial Court following a public hearing. If approved by the Court, the receivership will end and the current management team will be allowed to implement its turnaround plan. The Massachusetts Hospital Association commended the Attorney General and the State Receiver for stabilizing the plan, but recognized that there was more work to be done. The plan reassesses HPHC-owned health centers at their current market rate and redefines nearly $200 million in tax-exempt bonds in a way that creates a positive net worth. Specifically, the Insurance Commissioner can defer payments of interest and principal to the bond-holders. Additionally, Charles Baker, CEO of HPHC, has cited the managed care company’s withdrawal from Rhode Island, workforce reductions, and rate hikes in the vicinity of 10-15 percent as additional reasons for their financial turnaround. The Attorney General and Insurance Commissioner expressed optimism about the HMO’s financial performance in January and February, but will stay involved in overseeing the turnaround process.