1,000 Front-Range Doctors Abandon Rocky Mountain HMO, Millennial Says; Physician Group Says HMO in Breach of Contract for Nonpayment to Physicians.DENVER--(BUSINESS WIRE)--Nov. 11, 1999-- Millennial: Colorado's Physician Alliance, representing more than 1,000 physicians in Denver and Colorado Springs Colorado Springs, city (1990 pop. 281,140), seat of El Paso co., central Colo., on Monument and Fountain creeks, at the foot of Pikes Peak; inc. 1886. It is a year-round resort and a booming military, technological, and commercial city. , has terminated its contract with Grand Junction-based Rocky Mountain HMO HMO health maintenance organization. HMO n. A corporation that is financed by insurance premiums and has member physicians and professional staff who provide curative and preventive medicine within certain financial, effective Nov. 8, 1999. The move effects some 1,200 Rocky Mountain HMO patients currently seeing Millennial physicians. The physician group says they have not received September or October capitation CAPITATION. A poll tax; an imposition which is yearly laid on each person according to his estate and ability. 2. The Constitution of the United States provides that "no capitation, or other direct tax, shall be laid, unless in proportion to the census, or payments from the HMO to cover treatment of patients. David Scott
"Our physicians should be able to expect timely payment from health plans for services rendered," says Scott. "We believe that Rocky Mountain HMO is in breach of their contract with Millennial for withholding funds." According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Millennial, the problem started when the HMO withheld September payment from Millennial and requested to review Millennial's financial records. Millennial met with Rocky Mountain representatives Oct. 4 and released all of the financial information required by their contract with the health plan. After the meeting, the physician group received assurances that September reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. would be delivered. Millennial then received two letters from the health plan requesting additional proprietary information. Millennial also says the HMO wants them to take unnecessary, burdensome accounting measures in distributing payments to physicians. Millennial says that none of Rocky Mountain HMO's additional requests fall within the terms of the contract. "The bottom line is, Millennial is in complete compliance with the contract," says Scott. "The contract also states that Rocky Mountain HMO cannot withhold with·hold v. with·held , with·hold·ing, with·holds v.tr. 1. To keep in check; restrain. 2. To refrain from giving, granting, or permitting. See Synonyms at keep. 3. full payment to us for any reason, so they are clearly in violation of the terms." Rocky Mountain HMO lost nearly $700,000 in the second quarter of 1999 and has posted millions of dollars in losses in two of the last three years, according to a recent article in The Glenwood Post. "We appreciate that things are tough in health care, both for physicians and health plans," says Scott. "But our physicians still need to be paid." |
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