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Biotech / Medical : FPA Medical Management - FPAMQ -- Ignore unavailable to you. Want to Upgrade?

To: Douglas V. Fant who wrote (854)	7/7/1998 11:36:00 AM
From: Richard D	Read Replies (2) \| Respond to of 1110

Douglas, The fact that FPA has happily tossed the whole of Pacificare overboard suggests to me that PP Chapter 11 is not and will not be a near term solution. As you so astutely point out, it would have been wise before the Pacificare pullout, but not after (my words). Pacificare was a big, largely unprofitable, though mixed bag of worms, and would have been a candidate for PP Chapter 11. I think FPA are very happy to get away from the low capitation, unlimited risk, cash drain nature of the Pacificare contract. FPA probably got something in return for giving up the profitable contracts, like a free and clear notice of no further responsibility going forward. At least it would be nice if that were true. Regards, Richard