CLEVELAND-Ohio providers sued the state early last week, claiming the state failed to oversee the financial stability of Medicaid HMOs. The class-action suit asks the state to pay $15 million of unreimbursed services provided by Personal Physician Care, which once had more than 35,000 enrollees in Cuyahoga County as well as members in Akron and Youngstown. The suit, filed by the Ohio hospital association, contends that the Ohio Department of Insurance and the Department of Human Services should have known the Cleveland-based plan was in trouble, yet they allowed hospitals and physicians to continue to provide care for which the providers would not be paid. The insurance department assumed control of the plan under a court order last summer (Aug. 24, 1998, p. 29).
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