Medical Group Sues to Keep Fiscal Data Private

The California Medical Assn., the state’s largest physician lobby, filed a lawsuit Wednesday against the state Department of Managed Health Care to stop the public release of detailed information on medical groups’ finances.

The organization said such information should be kept private because it would give health plans too much power in negotiating contracts with doctor groups.

“These regulations allow health plans to victimize weak medical groups,” said association spokesman Peter Warren. “They’re going to squeeze a group that is in trouble. And for groups that are doing well, they will use the information to pay them less.”

He said consumers could misuse the data too. It is “information that they cannot . . . understand. They perhaps may misinterpret it and run from medical groups that look like they are . . . not doing well.”

The department is scheduled to release the detailed financial records Oct. 1, as authorized by regulations finalized last week. The rules stem from a 1999 law that requires regulators to collect financial data on medical groups.

Daniel Zingale, the department’s director, said that the regulations are important because nearly a quarter of California physician groups are in serious financial trouble and that consumers--and doctors themselves--have a right to know which ones they are.

“These regulations will give patients some advance warnings of medical groups’ problems,” Zingale said. Doctors too will be able to use the data to decide which groups to join, he added.

State Sen. Jackie Speier (D-Hillsborough), who wrote the 1999 legislation, opposes public distribution of the data, saying it would hurt medical groups’ abilities to negotiate reasonable contracts.

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Times health writer Charles Ornstein contributed to this story.