Financially Troubled California Group to Sell Health Unit
April 12, 2006
A foundation that operated its own nonprofit health plan has arranged to sell the health-maintenance organization for $30-million to solve its financial problems, reports the Los Angeles Times.
The decision by Watts Health Foundation, in Inglewood, Calif., to sell its UHP Healthcare to a for-profit company is not likely to affect the plan’s 80,000 members, many of whom are people with low incomes, the newspaper reports.
Watts Health, which had filed for Chapter 11 bankruptcy protection in May 2005, plans to focus on charitable work. State regulators and the U.S. Bankruptcy Court must approve the sale.
