Health Maintenance Organizations Contracts

Fran and Keith Gochmanosky wanted justice. Their 9-year-old son had undergone surgery to have 70% of his tongue removed because his pediatrician had overlooked a tumor in the boy's mouth. Distraught over the realization that their son would be haunted throughout his life--every time he speaks, interviews for a job or kisses a girl--the Gochmanoskys decided to take the doctor to court.

Stanford University, one of the nation's wealthiest private universities, is canceling its HMO contract to cut costs and has advised its students with families to consider going on welfare to get health insurance for their dependents.

WellPoint Health Networks Inc., one of the largest U.S. health insurers, signed a four-year agreement to treat its 4.4 million Blue Cross of California patients at eight hospitals owned by Columbia/HCA Healthcare Corp.

Dealing a blow to FPA Medical Management's efforts to stay financially afloat, PacifiCare Health Systems said Thursday that it has canceled "all but a handful" of its HMO contracts with the physician management firm.

MedPartners Inc., whose California health plan was seized and placed into bankruptcy last month by state regulators, has agreed to pay all of its debts in the state and continue funding its 117 clinics here until they are sold.

FHP Inc. has found a new source of revenue: selling its managerial expertise to other HMOs. The Fountain Valley health maintenance organization has signed a five-year contract with Greater Atlantic Health Services in Philadelphia to help develop, manage and market a new health care program for Medicare patients, said FHP chief executive Bill Price.