The news of January was resolute and sobering. Harvard Pilgrim Health Care, one of the nationís most highly rated managed care organizations, had fallen into state receivership, casting some 1.1 million members into doubt about their health care options and some 25percent of our business in limbo. As of the printing of this issue of PSU, state regulators, legislators, and leaders from throughout the health care industry have come together in an attempt to resolve this situation. This dramatic development underscores the tenuous nature of our current health care environment. Even more importantly, it demonstrates the pressing need for a broad, comprehensive approach to our current health care crisis.
As government and industry leaders continue to craft potential solutions to the HPHC issue, it is important to note that BWH and Partners are well represented at the table. Jeff Otten, both in his role as Chairman of the Massachusetts Hospital Association and as President of BWH, has been engaged in dialogue with legislators, the Speaker and the Senate President, as well as the Attorney General and the Insurance Commissioner. The message is straightfowardóhospitals cannot afford to subsidize HPHC.
Bringing this issue closer to home, what does HPHCís situation mean for this hospital and our affiliated physicians? As we wait for the stateís plan to address what appears to be at the minimum a $175 million loss at HPHC, we are already in the midst of strategic planning for the future here at BWH. We recognize that HPHC represents nearly a quarter of our business, and our relationship with Harvard Vanguard Medical Associates is closely tied to the resolution of these issues.
At the same time, we are engaged in renegotiations at the Partners level with Blue Cross on our HMO Blue contract. How relationships with these payors will change or be modified will be determined in the weeks and months ahead. As we move through these challenges, your input is essential to our future. Continue to keep us updated on your thoughts and concerns. Let us know how changes in this environment will impact you and your practice. We can no longer remain passive observers. On the contrary, we must speak out with a well-articulated aggregate voice during the hard negotiations ahead. The Brigham and Women's Physicians Organization is but one step in a broad strategy to insure that our concerns receive the attention deserved.
We are committed to working through these issues in a way that will continue to reinforce our dedication to providing the highest quality of care to our patients and their families.