CALIF. SYSTEMS PULL PLUG ON HEALTH PLAN.(Sutter Health and St. Joseph's Regional Health System are pulling the plug on Omni Healthcare)

Modern Healthcare, May, 1999 by Rauber, Chris

Deciding not to sink any more money into their struggling managed-care plan, Sutter Health and St. Joseph's Regional Health System are pulling the plug on Omni Healthcare.

The two not-for-profit California hospital systems said last week that they're shutting down the 14-year-old plan and transferring its remaining 124,000 enrollees to rival Blue Cross of California, a subsidiary of WellPoint Health Networks.

Neither the systems nor Blue Cross released the terms of the transaction, which effectively is a sale. The California Department of Corporations must approve the deal.

Omni hopes to complete the transfer of commercial enrollees by year-end. Shifting the 59,000 enrollees in its Medicaid plan could take until next spring, Omni officials...

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