Seven-hospital Detroit Medical Center and several other healthcare providers have asked the state court to appoint an independent counsel to investigate how Michigan's 10th largest HMO, OmniCare Health Plan, Detroit, went millions of dollars in debt to them while under state supervision. The DMC is OmniCare's largest creditor, with $27.6 million in unpaid bills. Not-for-profit OmniCare was placed under state-supervised rehabilitation in May 1998 when insurance regulators determined the company was not paying bills on time and was understating its debts. Since then the HMO's net worth has plummeted to -$57.2 million from -$1.9 million. The insolvency has left unpaid bills for about 500 physicians, hospitals and nursing agencies, who are under court order to continue providing services to OmniCare's 94,000 members. -- by Laura B. Benko
DMC asks why HMO worsened under state oversight
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