Watts Health Foundation, Inglewood, Calif., said it will sell its 80,000-member UHP Healthcare HMO to Care 1st Health Plan, Alhambra, Calif., for $30 million. Not-for-profit Watts Health filed for bankruptcy protection in May 2005 after amassing more than $50 million in debt. The foundation said it planned to focus on charitable work and would use the sale proceeds to help pay off creditors, which include about 20 Southern California hospitals. UHP Healthcare, one of the Los Angeles area's oldest HMOs, primarily serves Medicaid and Medicare beneficiaries. Founded in 1996, Care 1st is a for-profit Medicaid HMO serving about 180,000 members. Under the deal, Care 1st said it would donate $500,000 to Watts Health's charitable efforts. The deal must be approved by state regulators and the U.S. Bankruptcy Court. -- by Laura B. Benko
Calif. foundation to sell Medicaid-Medicare plan
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