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Kaiser Permanente faces $3 million fine

Managed Care Weekly Advisor, August 1, 2007

According to HMO regulators, Kaiser Permanente is being fined $3 million by California because of haphazard investigations of questionable care, poor physician performance, and numerous patient complaints. The largest HMO in the state, Kaiser has 29 medical centers and more than 6 million members.

According to the Los Angeles Times the fine is the second in a year. In August, Kaiser was penalized $2 million for forcing hundreds of transplant patients to use its new program instead of more established, out-of-network hospitals. Kaiser agreed to pay $3 million more to encourage organ donation.

The most recent fine is the result of 246 complaint investigations and quality-of-care concerns in four northern and four southern hospitals. If Kaiser makes the required improvements, the California Department of Managed Care will forgive $1 million of the fee.

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