Health Net Ready to Provide Millions to Keep Health Clinics Open
August 11, 2010 at 15:30 PM EDT
With the State of California’s budget situation threatening to again halt payments to the state’s health clinics, the Health Net Foundation and Health Net of California, Inc., together, are prepared to provide up to $7 million in zero-interest financing to help prevent Central Valley clinics from shutting their doors.
“Without this financing, if there is a prolonged impasse and payments stop, many of our member community health centers would likely have to take drastic measures, including scaling back operations, until a budget is passed," said David Quackenbush, chief executive officer of the Central Valley Health Network.
This marks the fourth year Health Net of California has made no-interest financing available to health clinics. In 2007, 2008 and 2009 Health Net of California extended financing to certain clinics after their state reimbursements were halted by the state’s late budget adoption.
“Health clinics are the main source of primary and specialist care for millions of Californians,” said Dave Meadows, vice president of State Health Programs for Health Net of California. “Clinic shutdowns could have terrible health implications for residents, and Health Net wants to help preserve communities’ access to quality health care.”
“These loans support the Health Net Foundation’s mission and Health Net, Inc.’s new corporate social responsibility program, Health Net Healthy Communities, both of which focus on increasing access to care in underserved areas,” said Patricia Clarey, president of the Health Net Foundation. “In particular, the foundation focuses on increasing the supply of services and removing barriers in these communities. Shutting down clinics is certainly a barrier to care we want to help prevent.”
If state funding is halted, the Health Net Foundation and Health Net of California together will provide up to $7 million in no-interest loans to certain Central Valley Health Network clinics and other Central California clinics to help bridge their finances until the state Medi-Cal program resumes regular payments. Central Valley Health Network consists of 13 clinics and their satellites in 20 counties.
About the Health Net Foundation
Based in Woodland Hills, Calif., the Health Net Foundation was created in 2007 as a philanthropic arm of Health Net, Inc. (NYSE: HNT), one of the nation’s largest publicly traded managed care companies. The Health Net Foundation’s mission is to serve as a resource to improve people’s health in underserved communities that Health Net, Inc. serves. To achieve its goals, the foundation supports programs that improve access to health care services and promote wellness and prevention.
About Health Net of California
Health Net of California, Inc., a subsidiary of Health Net, Inc. (NYSE: HNT), is one of the largest health plans in the state. Together with Health Net Life Insurance Company, it serves more than 2.2 million members statewide and contracts with more than 56,000 physicians, more than 300 hospitals and more than 5,600 pharmacies, giving its members greater choice and more convenient access to care. Its commercial HMO/POS and Medicare lines of business have received the “excellent” accreditation status from the National Committee for Quality Assurance. Its PPO line of business (offered by Health Net Life Insurance Company) and its Medicaid line of business have received the “commendable” accreditation status. For more information about Health Net, visit its website at http://www.healthnet.com/.
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