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Physicians Group May Declare Bankruptcy

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From Associated Press

A major Contra Costa County physicians group may be forced into bankruptcy early this year, after the termination of a health insurance contract.

A series of financial setbacks has left the fate of the East County Medical Group, consisting of 200 doctors and 18,700 patients, highly uncertain.

Last week, insurer Health Net said it was ending its contract with the medical group, taking away 42% of East County’s business.

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Dr. John Copeland, one of East County Medical’s board members, said a final decision on bankruptcy would be made within the next week. One board member estimated the group’s debt at $5 million.

Health Net originally decided to end its contract with East County in late 2002. But the action was stalled when the medical group sued the insurer, accusing it of ending the contract without proper justification.

A judge forced Health Net to continue the contract until Wednesday. A lawsuit over the matter is scheduled for trial in May.

Health Net spokesman Brad Kieffer said: “A year ago, we could not come to an agreement. Subsequently, we’re doing what’s in the best interests of our members.”

Copeland said Health Net made its decision without the East County doctors’ consent.

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