NU Online News Service, March 24, 2003, 12:57 p.m. EST – PacifiCare Health Systems Inc., Cypress, Calif., says it may take responsibility for some obligations of three physician groups that failed in Texas.
PacifiCare says its Texas subsidiary has entered into a “binding memorandum of understanding” with the Texas Attorney General and the Texas Department of Insurance that calls for it to make good on the obligations of the failed physician groups to providers that treated PacifiCare plan members.
The memorandum also calls for PacifiCare’s Texas subsidiary to drop its countersuit against the state, and for the subsidiary to pay the state $4.25 million in fines, fees and reimbursement payments.
Texas has agreed to postpone investigations related to the dispute for 12 months while PacifiCare begins making good on the obligations of the failed Texas physician groups. “If all conditions to the settlement are not met, then litigation could resume,” PacifiCare says.