As PSU was going to print, news of a resolution to the Harvard Pilgrim Health Care situation was becoming public. In a press conference on March 2, Attorney General Thomas Reilly and Insurance Commissioner Linda Ruthardt announced a plan to move HPHC out of receivership. The plan, which needs to be approved by the Supreme Judicial Court, reassesses the value of HPHC health centers and includes a series of accounting adjustments that provide HPHC with a positive net worth. State regulators felt optimistic about the financial performance of the HMO in January and February and demonstrated confidence in HPHC’s turnaround plan. Oversight of the HMO will continue.
The Massachusetts Hospital Association thanked those involved in the plan, but cautioned that “there are more details to understand and there is much more work to be done.” More about the HPHC resolution will be included in the April issue of PSU.