Hoping to Skip the Middleman

Chalk up another one for doctors trying to grab back what was once theirs.

Physicians Care of California, an Irvine-based network of 1,100 doctors, aims to cut out the middleman--namely, HMOs--by contracting directly with large local employers to provide health benefits to workers.

Pamela Heredia, the network’s executive director, claims that some patients who rushed into HMOs in recent years are now abandoning them for plans that offer more choices among medical providers. Though HMOs generally require patients to see a general practitioner before a high-cost specialist, Heredia says, her network enables patients to see a specialist first if they wish.

She says the doctors’ network, which runs on four employees, doesn’t have the overhead costs of a large HMO. The privately held organization, started three years ago, already provides managed care to about 2,000 individuals on programs with small local companies with two to 20 employees. It’s now awaiting approval from the state’s Department of Insurance to market its services to larger employers.

Its clients also include Hoag and Brea Community hospitals’ employees--a combined work force of about 4,000.

Barbara Marsh covers health care for The Times. She can be reached at (714) 966-7762 and at barbara.marsh@latimes.com