News in brief - Jan. 6, 2003

Md. group offers plan for uninsured - Biotech fund raises $900 million - Health info firm makes acquisition - Net equipment sellers merge - N.C. opens managed care agency

Md. group offers plan for uninsured

The Baltimore-based Maryland Citizens' Health Initiative is coming up with a plan that counts on employers to help cover the state's 600,000 uninsured.

Under the group's plan, the state would mandate that employers offer "affordable, comprehensive" health insurance or pay 5% of their payroll into a health insurance fund that would defray the cost of providing coverage.

The plan also would expand access to the small group health insurance market for small businesses and make it easier for individuals to purchase insurance through an existing state comprehensive benefits plan.

The plan is estimated to cost $669 million to implement and would be funded partly by federal matching funds and a higher tobacco tax, the citizens' group said.

Biotech fund raises $900 million

MPM Capital LP, an international investment management company, has raised a $900 million venture capital fund that will invest in early-stage as well as publicly held companies offering medical technology and biotechnology products. The venture capital fund will invest $5 million to $60 million per company, with a preferred investment size ranging from $15 million to $25 million in each of its potential portfolio companies. MPM Capital has offices in Boston, San Francisco and Munich, Germany.

Health info firm makes acquisition

Precyse Solutions, a King of Prussia, Pa., provider of outsourced health information management services, has bought the health information services division of QuadraMed Corp., for $14.3 million. The QuadraMed unit offers coding, compliance and education services. It also offers health information management consulting and outsourcing services.

Net equipment sellers merge

Global Healthcare Exchange LLC, Westminster, Colo., and Medibuy Inc., Nashville, Tenn., both sellers of medical equipment and products to hospitals over the Internet, have agreed to merge. Terms were not disclosed. The newly combined company will be based in Westminster.

N.C. opens managed care agency

North Carolina's Office of Managed Care Assistance has begun operating within the state's Dept. of Justice.

The agency was established as part of a patients' bill of rights package passed by the state legislature in 2001. The legislation also gave patients the right to sue HMOs that deny them care once a review by an independent board of medical experts is complete.

The new managed care office is designed to advise patients about the utilization review process and to provide them with assistance in filing grievances, appeals or applications for external reviews, said Christine Ryan, the office's director. Ryan is former legal counsel for North Carolina's health plan for teachers and other state workers.

In addition to being available for patients, Ryan and three other specialists can help doctors in the state who are having problems with HMOs and need someone to step in as a mediator, or for general advice on the managed care process, Ryan said.

While the office itself does not have the legislative authority or the manpower to pursue enforcement action against HMOs in violation of state rules, it will refer unresolved violations of consumers' rights to the state Dept. of Insurance, Ryan said.

That department previously had fielded calls from patients on HMO matters.