January 10, 2000

The Commonwealth of Massachusetts placed Harvard Pilgrim Health Care (HPHC) into receivership Jan. 4 to try to help stabilize the ailing health maintenance organization. This move is intended to ensure that the 1.3 million members of HPHC continue to receive care and coverage.

The state's decision, prompted by higher-than-expected losses reported by HPHC, requires that State Insurance Commissioner Linda Ruthardt oversee HPHC financial operations. HPHC represents a significant amount of volume throughout the Partners system and provides health insurance to many MGH employees.

According to a memo from Samuel O. Thier, MD, president and CEO of Partners, the hospitals throughout the system will be monitoring the situation closely to make sure all patient care and financial interests are met. "The first and most important thing to note is that there will be no interruption in the care we provide to our patients," says Thier. "It also is important to note that our employees who are members of HPHC will continue to receive coverage. Finally, as this situation unfolds, we are taking every possible action to ensure that reimbursement for ongoing care is maintained at the current level."

HPHC represented 6.1 percent of total inpatient discharges at the MGH in fiscal year 1999. Last year, approximately 8.5 percent of MGH employees were HPHC subscribers.

For more information about the receivership, call (888) 860-6277 and ask for the Attorney General's Insurance Hotline.