FPA Medical Management said last week it was negotiating with creditors to obtain additional financing before a July 8 payment deadline and attempting to exit unprofitable markets.
The San Diego-based physician practice management company said it has no immediate plan to seek Chapter 11 bankruptcy reorganization, although it may consider filing later in the year as part of a restructuring. It appointed Thomas Allison, a turnaround specialist with Arthur Andersen, to be its chief financial officer.
Meanwhile, the California Department of Corporations is studying the company's financial records to determine its solvency. FPA holds a modified Knox-Keene license from the state, which allows it to sign global capitation contracts with HMOs.