California physician finances no longer at risk for public exposure

The state medical association wins a suit to stop state HMO regulators from releasing financial information on medical groups.

By Myrle Croasdale, AMNews staff. April 1, 2002.

A court has said no to the California Dept. of Managed Care's plan to release financial information on medical groups.

A judge for the California Superior Court in Sacramento County ruled in March that the state's HMO regulators may not gather information on physician groups' finances nor distribute such data to the public. The California Medical Assn. had sued to stop the managed care department's efforts.

The CMA said the decision was more than it had asked for. The association had sought to prevent the release of proprietary financial information for fear it would give health plans an unfair advantage in negotiating contracts with physicians. It had not opposed the collection of such data by the state agency.

"CMA supports proper disclosure to patients," said John Whitelaw, MD, the association's president.

"We will work with the state government to create regulations that inform the public without disclosing information that will further disadvantage physicians in negotiating fair contracts with these for-profit health plans," he said.

The decision brings more clarity to broad legislation passed in 1999 intended to regulate the state's medical groups following a slew of independent practice associations and physician practice management company bankruptcies that disrupted medical care for a significant number of patients in California. [...]