Health care regulators call off plan to post doctors' finances. (Health Care).

STATE regulators have backed down on their plans to collect and publicly release financial information detailing the financial strength of medical groups, a proposal fiercely opposed by the California Medical Association.

The state Department of Managed Health Care had proposed releasing the data under a law passed in 1999 that was intended to give the state an early warning on groups that may be on the edge of failure.

The law was passed during a time when spectacular group failures rocked the state, disrupting patient care. The situation has improved since then but failures are still occurring regularly.

The department argued that the data would help consumers choose strong groups but the medical association argued it should only be for the department's internal use. Releasing it would give health maintenance organizations an unfair bargaining advantage during contract negotiations, the doctors' group said.

"Depending on the market niche and size of the group it could be devastating," said Shannon Smith-Crowley, a CMA lobbyist.

The managed health department backed down this month when state Sen. Jackie Speier, D-San Francisco, who authored the original 1999 legislation, introduced a clean-up bill clarifying her intent that the data should not be made publicly available.

The bill, however, does create a broad financial grading system for the groups that would be made available to the public, an approach that has won the support of the CMA. The bill, SB 261, has its first hearing this week in the Senate Insurance Committee.

Oil at Vitamin?

Pharmavite LLC, a Northridge-based vitamin and supplement maker, has become the latest beneficiary of Procter & Gamble Co.'s ambitious brand extension plans.

The Cincinnati-based consumer products giant has licensed its Olay trademark to Pharmavite for the manufacture of a line of vitamins and supplements targeted at women.

The supplement line would be the first one linked to a beauty trademark domestically, though L'Oreal Group has cut a deal with Nestle Group to sell similar products overseas, said Douglas Jones, a Pharmavite marketing manager.

The line, which will include both traditional vitamins as well as supplements aimed at improving women's appearance, is expected to hit shelves in May.

Pharmavite has a low profile, but its Nature Made vitamins and supplements is the No. 1 line sold domestically and company officials think the Olay line could equal it. "Olay is a huge brand with women," Jones said.

The privately held company does not divulge exact revenues but acknowledges they top $400 million annually.

The line will be sold at competitive prices in traditional ouflets, including drug stores, supermarkets and mass retailers, and placed where supplements are normally sold. Similar P&G licensing deals have landed products such as Cover Girl eyewear and Pantene hair dryers on store shelves.

Campo Rancho 

Supporters of the Rancho Los Amigos National Rehabilitation Center have been camped out more than a month in front of the Downey rehab hospital and vow to stay there until the county changes its closure plans.

Former patients, employees and others rally each day calling on the Board of Supervisors to halt the planned June 30 closure.

During the day the encampment swells with visitors. L.A. Councilman Antonio Villaraigosa slept there one day earlier this month.

Supervisors are scheduled to hear an update on the status of the county health budget this week and could vote on whether to keep the hospital open another year.

Staff reporter Laurence Darmiento can be reached at [phone] ext. 237 or at [e-mail]