State Puts Conservator in Charge of an HMO
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From Times Staff and Wire Reports
State regulators assigned a conservator to take over a financially struggling Santa Clara county HMO, officials said Friday.
The move to take over Lifeguard Inc. won’t affect the health plan’s 168,000 enrollees, said state Department of Managed Health Care spokesman Steven Fisher.
The company was required to maintain net assets of about $18 million, but fell short of that, regulators said.
Additionally, the health plan’s working capital was twice its assets, which regulators said called into question the company’s ability to pay its bills.
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