Aetna settlement foundation hands out grants

The organization dedicated to small and solo physician groups awarded money to proposals tackling issues of chronic illness management, care for the uninsured and technology.

By Mike Norbut, AMNews staff. Dec. 12, 2005.

The foundation established as part of physicians' settlement of a class action against insurance giant Aetna Inc. has awarded about $16 million to physician groups in its inaugural grant cycle.

The grants, which are designed to benefit small and solo practices, were awarded to proposals for programs that sought to help patients with chronic illnesses, upgrade technology to improve patient safety, and treat uninsured patients.

More than 400 organizations submitted proposals, and 26 received grants that ranged from nearly $100,000 to $1 million. Foundation leaders said it was yet another positive outcome of the years doctors spent fighting insurance companies over reimbursement.

"Put it this way: We're very proud to be able to do this and we expect in the next year, we'll be able to do it again," said Tim Norbeck, executive director of the Connecticut State Medical Society and president of the Physicians' Foundation for Health Systems Excellence.

The foundation, which has nearly $100 million in assets, was set up as part of physicians' agreement with Aetna. The insurer gave the foundation $20 million as part of the settlement. The remainder was from physicians who donated their individual portions of the settlement.