OmniCare Health Plan, Detroit, will stay in business after a Michigan judge approved a rehabilitation plan for the financially troubled Medicaid HMO, which was placed in state receivership last July after three years of court-ordered supervision. Under the plan, creditors may opt to be paid up front an average of 26 cents on the dollar owed or they can select full payment over a longer period of time. Seven-hospital Detroit Medical Center is OmniCare's largest single creditor, with nearly $28 million in unpaid bills. At deadline DMC officials could not be reached for comment. At the time it entered receivership, not-for-profit OmniCare was losing $1 million per month and had a net worth of negative $57 million. About two-thirds of its 94,000 members are on Medicaid. Under the rehabilitation plan, OmniCare can convert to for-profit status with court permission. It also is required end its management agreement with United American Healthcare, Detroit. -- by Mark Taylor
Rehabilitation plan approved for Mich. HMO
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