FHP Sends Stockholders Letter on Medication Error by Nurse

FHP Inc., trying to counteract what it termed “negative publicity” over a medication error that led to the death of an elderly cancer patient at its Fountain Valley hospital, has sent letters and facsimiles to its major shareholders providing an explanation of the incident.

The letter and faxes were sent Wednesday in response to “a couple of inquiries from local investors” who read about the incident last week in local newspapers, said Anna Marie Dunlap, associate vice president of the Fountain Valley-based health maintenance organization, who signed the letter. The patient’s death occurred in November but was not publicly disclosed until last week.

“We felt it was a good idea for other shareholders to be aware of it from the company as opposed to hearing about it from another source,” Dunlap said. The letter, in fact, stated that its purpose was to lay at rest “misconceptions and rumors surrounding the incident.”

The four-paragraph letter was telefaxed to 97 people, including “our major shareholders and our key portfolio manager and analysts who follow the company and some press people,” Dunlap said. Publicity over the incident has not affected FHP’s stock price.

She said letters were sent by regular mail to an additional 150 shareholders on Wednesday.

The letter says in part: “ . . . A nurse employed by the FHP Hospital did in fact administer the wrong medication to a 74-year-old patient who was terminally ill with cancer, septic shock and congestive heart failure. The nurse reported her error and she was terminated from FHP’s employment within a week. FHP also promptly reported the incident to the California State Department of Consumer Affairs, Board of Nurses, thus triggering an investigation.