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Downey Regional Medical Center files for bankruptcy protection
Downey Regional Medical Center has filed for Chapter 11 bankruptcy protection. HMO contracts were cited as the reason for the need for Chapter 11 bankruptcy protection.
The filing, officials say, would allow the hospital to get out of unprofitable HMO contracts. Downey Regional is a nonprofit, 199-bed facility, and hopes to emerge from bankruptcy in about a year. Its goal is to drop HMO patients in favor of PPO (Preferred Provider Organization) patients. PPO contracts take on the financial risk of medical coverage by paying hospitals a fee for each service provided.
Downey Regional claims to have lost more than $100 million in recent years, largely because of HMO contracts. HMO insurers pay hospitals a set fee per patient per month, regardless of how much treatment those patients receive.
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But the game has changed: Congress voted to eliminate funding for public media across the country. Here at LAist that means a loss of $1.7 million in our budget every year. We want to assure you that despite growing threats to free press and free speech, LAist will remain a voice you know and trust. Speaking frankly, the amount of reader support we receive will help determine how strong of a newsroom we are going forward to cover the important news in our community.
We’re asking you to stand up for independent reporting that will not be silenced. With more individuals like you supporting this public service, we can continue to provide essential coverage for Southern Californians that you can’t find anywhere else. Become a monthly member today to help sustain this mission.
Thank you for your generous support and belief in the value of independent news.
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