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California officials to review licensing for HealthCare Partners

October 29, 2012|By Chad Terhune
  • Dialysis giant DaVita Inc. is acquiring the medical groups run by HealthCare Partners, based in Torrance.
Dialysis giant DaVita Inc. is acquiring the medical groups run by HealthCare… (Myung J. Chun/Los Angeles…)

Following a patient lawsuit filed last month, California officials say they are reviewing whether HealthCare Partners and its medical groups are in compliance with state law.

The California Department of Managed Health Care said Monday that it is "reviewing the allegations that HealthCare Partners is operating as a health plan without a license."

Last month, patient Juan Carlos Jandres sued HealthCare Partners in Los Angeles County Superior Court, accusing it of violating state law by managing patient care without the necessary government license under the Knox-Keene Act.

A spokesman for HealthCare Partners said the company is "in full compliance with state and federal law."

In May, kidney dialysis giant DaVita Inc. agreed to acquire Torrance-based HealthCare Partners for $4.42 billion in cash and stock. HealthCare Partners is the largest operator of medical groups in the U.S., with a major presence in Southern California, Nevada and Florida.

HealthCare Partners serves about 670,000 patients through a team of 700 physicians that are either employed by the company or its affiliated medical groups.

The company had $2.4 billion in revenue last year and its operating profit was $488 million.

The deal is part of a growing trend of insurers, hospitals and large healthcare companies acquiring physician practices to better position themselves for changes in how the federal government is paying for medical care.

State officials said they had no jurisdiction over the deal with DaVita, which is scheduled to close in the fourth quarter.

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