GHA SAYS SUIT TO VOID GHA/HUMANA SALE ELECTION IS "AN EMOTIONAL LAUNDRY LIST OF FALSEHOODS, DISTORTIONS, AND INNUENDOES"
WASHINGTON, July 30 /PRNewswire/ -- Following is the statement by David A. Greenburg, chairman of GHA's board of trustees, in reaction to a suit filed Friday by the Group Health Member Fights Committee to invalidate an election now being held among GHA members to sell Washington's oldest HMO to Humana Inc. of Louisville, Ky. for approximately $50 million. "The complaints in this lawsuit represent an emotional laundry list of falsehoods, distortions, and innuendoes. "We urge all GHA members who have not yet voted to fill out and return their ballots immediately. We are confident that the vast majority of our members will keep their eyes focused on the most important issue in the referendum; the continued security of their health care coverage. "The suit is a desperate move by the Member Rights Committee who apparently believe that the overwhelming majority of GHA members support the sale. But rather than allow the majority to rule, this small group of members would rather have a free and fair democratic election declared null and void. "Any objective evaluation of GHA's true financial condition shows beyond a shadow of a doubt that: -- GHA's share of the Washington-area HMO market has plunged from 41 percent in 1984 to less than eight percent today. -- GHA's operating margin now stands at less than one percent. -- GHA continues to lose members at the rate of about 1,000 a month. "These are the important financial facts of GHA's situation that not even the Member Rights Committee has tired to deny. "The sale has been endorsed by eight knowledgeable current board members and an influential group of objective observers -- 11 former members of GHA's board of trustees who also know what they are talking about. "These 19 experts about GHA's situation have lived and breathed its financial difficulties for the last several years. All of them know what the Member Rights Committee refuses to accept -- that Humana is the best hope for Group Health and its members. "The feedback that members of the board have received at member forums and other meetings over the last few weeks shows that most people are not willing to gamble their health care coverage by seeing how close to the financial cliff we can take this organization." -0- 7/30/93 /CONTACT: Edward Segal for Group Health Association, 202-333-7966/
CO: Group Health Association ST: District of Columbia IN: HEA SU:
TM -- NY088 -- 8006 07/30/93 19:09 EDT
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|Date:||Jul 30, 1993|
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