Daughters Medical Group Barred

The Department of Managed Health Care issued a cease-and-desist order earlier this year against a medical group affiliated with the Daughters of Charity Health System due to its deficient finances.

According to DMHC records, the order to no longer be assigned new patients from insurers was issued against the Daughters of Charity Medical Foundation last March 24. The DCMF serves as a risk-bearing organization that provides services for enrollees of 10 carriers, including Anthem Blue Cross, Cigna, SCAN Health Plan and Blue Shield of California. 

The DMHC had concluded that the foundation had violated state laws regarding the required net tangible equity on hand. Since the third quarter of 2014, the foundation had negative equity. It was unable to satisfy the DHMC with a plan of correction.

DCMF finally satisfied the DMHC’s equity requirements earlier this summer, prompting the agency to lift the cease-and-desist order on Aug. 7.

No fine was issued by the DMHC in the matter.

Daughters of Charity is seeking a buyer for its hospitals.