Maxicare to Discuss Buyout Proposal With PacifiCare

Managers of Maxicare Health Plans have agreed to meet today with officials of PacifiCare Health Systems Inc. to hear more about PacifiCare’s plan to make a bid for the Los Angeles-based health maintenance organization, which is currently operating under federal Chapter 11 bankruptcy protection.

The meeting is to “explore their intentions,” Maxicare attorney Peter J. Wolfson said Monday during a U.S. Bankruptcy Court hearing in Santa Ana on Maxicare’s disclosure statement and plan of reorganization to emerge from Chapter 11. Although the company agreed to talk to PacifiCare, it doesn’t intend to let that delay Maxicare’s plan to emerge from Chapter 11 as soon as possible, he said.

Maxicare believes that it is essential that the bankruptcy proceedings be concluded at least by June 25, Wolfson said. Maxicare, which has lost substantial membership since its March, 1989, bankruptcy court filing, is seeking to be out of bankruptcy court before the next period when major employers choose the health plans they will offer to employees.

In a surprise move last week, Cypress-based PacifiCare said it would make a bid to acquire Maxicare--a move that would boost PacifiCare’s membership by about 50%--but disclosed no details of a proposed buyout. Maxicare officials said the company is not for sale and the announcement came just days before a critical phase of the bankruptcy proceedings was to begin.

In a packed courtroom Monday, U.S. District Court Judge John J. Wilson began to hear objections to Maxicare’s amended plan filed with the court. The hearing will continue on May 7.

On an issue that has plagued Maxicare since its bankruptcy filing, Wolfson said the company has agreed to settle with providers who are successful in getting relief from the court injunction that currently prevents the providers from directly billing Maxicare members for services provided.