Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Brady B. who wrote (861)	7/10/1998 6:03:00 AM
From: x fpamm emp	Read Replies (2) \| Respond to of 1110

Dear BB Sorry to hear of your misfortune,,, I was an FPAMM emp before they went public. I could see the trouble that came with going public. FPAMM tried to buy any and all practices they could get their hands on. With increasing the overhead/patients healthcare costs and physicians reimbursement it didn't take a rocket scientist to see the writing on the wall. Instead of managing they were marketing themselves into financial strife. I had seen it happen before with another medical group that grew to fast, couldn't keep up with the influx of bills from physicians. Did not pay bills and HMO's began pulling out. In fact in 1992 FPAMM took over many contracts from a medical group that went bankrupt. FPAMM also employed many of the MD's that had been with the other medical group. When a contract is made by a medical group with an HMO and or physician, on paper it looks great... $12.00 for every patient paid to the medical group by the insurance plan every month. The problem is if you have a couple catastrophic patients they will bleed the well dry. The medical group isn't able to pay the physicians for the care they have given. Then, physicians become hard to find because bad news travels fast. As MD's are a close knit group word of mouth spreads "FPAMM doesn't reimburse for services" It then becomes very difficult to find MD's IE; Cardiologists, Gen. Surgeons, that you can send a patient to. Then word gets out to the HMO's and they drop the Medical groups like a hot potato. Once one HMO stops contracting with a Medical group, other HMO's tend to follow. It will be interesting to see if FPAMM is able to stay in business. I am not a gambling person, but I would bet that FPAMM will not be able to survive. I can only say I am glad I got out of FPAMM before all these problems. And I am even happier that I was able to cash in my FPAMM stocks that I had accumulated during my employment while it was still at $40 a share.