MedPartners Doctors Are Ordered to Treat Patients

The conservator appointed by state regulators to run troubled MedPartners Provider Network Inc. said Blue Cross of California endangered the health of its 118,000 members by assigning them to new medical groups.

Eugene Froelich said his office ordered doctors in the MedPartners network to continue to treat patients who need care but were removed from their rolls by Blue Cross.

“I was shocked,” Froelich said about Blue Cross’ transfers Friday, which he said disrupted patient care during the weekend.

Some patients who were scheduled for chemotherapy Friday were told they were no longer eligible for it because they had been transferred to other doctors, Froelich said.

Blue Cross officials would not comment on Froelich’s remarks or say whether they would rescind their decision.

The California Department of Corporations, which regulates health-care businesses, on Friday issued a cease-and-desist order against Blue Cross, accusing the health insurer of violating state laws by transferring enrollees to other provider groups without state permission.

John Cygul, a spokesman for Blue Cross, said he couldn’t say whether the firm would comply with the state’s directive.

“We’re having ongoing discussions with the state and we want to be cooperative, but we’re still trying to figure out how best to proceed,” Cygul said.

The Department of Corporations took over the California subsidiary of MedPartners, an Alabama-based company, and immediately placed it in Chapter 11 bankruptcy protection. The physicians practice management group, which contracts with health plans to provide care for their members, has filed two court actions seeking to regain control of its 117 clinics with 1,000 doctors.

Since the takeover, Froelich has promised that patient care would not be interrupted. He has said he is confident that with proper guidance, MedPartners’ network can become profitable.

Other large health maintenance organizations seem to be giving Froelich their support--for now. PacifiCare of California, Cigna Healthcare of California and Health Net said they do not plan to switch their members to other groups.

MedPartners shares fell 13 cents to close at $3.25 on the New York Stock Exchange.