The California Medical Association installed a Kaiser Permanente physician as its president for the first time March 20 at the association’s annual convention.
Michael Sexton, M.D., took the helm of the association, which represents many, but far from all of the state’s physicians, at the conclusion of the group’s annual House of Delegates. Sexton, 58, is board certified in emergency medicine and has been a member of Kaiser’s Permanente Medical Group for 30 years.
Jack Lewin, M.D., its longtime CEO, continues to run the organization, which represents about 35,000 California physicians, on a day-to-day basis.
An emergency physician on the medical staff at the Kaiser Foundation Hospital in San Rafael, Sexton is the first Permanente physician elected to head the CMA, which in an earlier era looked down on Kaiser doctors as advocates of “socialized medicine” or worse. But those days are long gone, and Kaiser physicians now make up 11.4 percent of its membership.
Sexton headed the emergency department at Kaiser San Rafael from 1977 to 1983 and presided over its medical staff from 1979 to 1981. He has been active in local, state and national medical societies for more than 30 years, serving as chair and vice chair of the CMA’s Board of Trustees and as president of the Marin Medical Society. He has been a member of the CMA board for 11 years.
In a March 20 address to the House of Delegates’ 700 members, Sexton called on the CMA to take an aggressive role in championing health-care reform in California, CMA officials said, arguing that “crushing economic pressures, confusion surrounding quality and the crippling numbers of the uninsured demand that the physicians of the CMA lead California to a better place for our patients.”
Still to be seen: How much actual clout Sexton will have in his new role, which has often been more ceremonial than not.
Warner Pacific to rep Kaiser
Warner Pacific Insurance Services, a Westlake Village-based insurance brokerage, says it’s been named as Kaiser Permanente’s first general agency partner, a wholesaler that works with retail brokers on behalf of its clients.
Oakland-based Kaiser, which has traditionally stuck to its traditional HMO products, is branching out in new directions and wants to use thousands of insurance brokers statewide to help.
“We’re excited to offer (Kaiser’s) medical plans to more than 20,000 agents and brokers throughout California,” John Nelson, a Warner Pacific vice president, said in a statement. Warner Pacific will broker Kaiser’s small-group health plans, including:
* Co-payment plans with varying benefit levels and co-payments.
* Deductible plans featuring co-insurance for hospital services and co-payments for outpatient and pharmacy services.
* Point-of-Service plans with three tiers of member access.
* Dental and chiropractic riders through San Francisco’s Delta Dental of California and American Specialty Health Plans of California.
Tom Carter, Kaiser’s Oakland-based vice president of sales and broker relations, said the deal is Kaiser’s “first direct contract with a general agent,” although it works with other G.A.s indirectly on its CalChoice and PacAdvantage programs.
Pharmacists’ network sold
The California Pharmacists Association, which a few weeks ago reported that it’s launching a new subsidiary, Premier Pharmacists Networks, is selling its 21-year-old Pharmaceutical Care Network Medicaid PBM to National Medical Health Card Systems Inc. of Port Washington, N.Y., for $13 million in cash, along with potential additional payments based on performance.
The deal has unique dynamics, according to the attorneys at San Francisco-based Pillsbury Winthrop law firm, which handled the M&A deal, in that a nonprofit entity (CPA) sold a for-profit subsidiary (PCN) to a public company (NMHCS). Maureen Corcoran led a team of Pillsbury Winthrop attorneys involved in the deal.
Just three weeks ago, this column reported that the Sacramento-based CPA, which links 5,500 pharmacists statewide, was launching its new PPN subsidiary to help California pharmacists “meet the cost- and quality-related medication needs of the health-care marketplace.”
At the time, Michael Negrete, Pharm.D., the new subsidiary’s CEO, said it will be seeking business directly from consumers, as well as from employers and third-party payers such as HMOs, Medicare and Medi-Cal. He also predicted that by month-end it would be accepting applications from Bay Area and other pharmacists.