PRESS RELEASE March 10, 2003

Contact: Robert Finney
Telephone/fax (760)436-0183
E-mail: rdf@cpc-com.com

HMO HARDBALL

FROM THE EXAM ROOM
TO

THE COURTROOM

PIONEERING LEGAL TRIUMPH
HMO PATIENTS WIN NEW RIGHT TO SUE

Patient rights advocates Jacquelyn Finney (Plaintiff, In Pro Per*) and Robert Finney, Ph.D. have won a new right to sue a State, State officials, an HMO, an HMO Medical Group and a coalition of large corporations for breach of contract and RICO. Named defendants and affiliate entities include:

  • California Department of Managed Health Care (DMHC)

  • Daniel Zingale, DMHC Director

  • Andrew George, Senior Legal Counsel, DMHC, HMO Help Center

  • Kaiser Foundation Health Plan/Kaiser Permanente Medical Group

  • Pacific Business Group on Health (PBGH)

THE GOVERNMENT'S CONTRACT WITH HMO PATIENTS

Dr. and Mrs. Finney convinced a Superior Court Judge that a state managed care regulatory agency has a "contract" with patients and must not fail to allow them the benefits mandated by patient rights laws.

THE RULING

On February 20, 2003, San Diego Superior Court Judge Thomas P. Nugent ruled that Mrs. Finney had pleaded sufficient facts to overrule the Department of Managed Health Care's demurrer and allowed a cause of action for breach of contract to proceed to summary judgment or trail.

The lawsuit, Finney v. California (Case No. GIN024734) states facts that defendants:

  • Conspired to "gag" and coerce Dr. and Mrs. Finney to prevent them from communicating with the HMO and its physicians about their rights prior to and during the course of their physician patient relationships.

  • Retaliated by denying a second opinion from the specialist of their choice within the HMO Medical Group (a legally mandated benefit), unless they expressly waived all their rights.

  • Demanded that they waive their right to informed consent in medical decision making and waive other rights fundamental to the doctor-patient relationship.

Judge Nugent allowed a future RICO cause of action to be pleaded. Defendants did not rebut the lawsuit's allegations that they are acting in conspiracy under color of state law to violate patients' Constitutional rights, harming the public health and safety.

He granted the State's attorneys ten days leave to answer. Pleadings and Progress Reports can be viewed on www.hmohardball.com.

UPDATE

Subsequent to the lawsuit's filing (10/11/2002) and prior to the Judge's ruling (02/20/2003):

  • Governor Gray Davis (D-CA) summarily removed Daniel Zingale from his position as Director of the Department of Manage Health Care.

  • The California Patient Advocate, Dr. Martin Gallegos, resigned.

  • DMHC deleted the State-sponsored Patient's Rights Enforcement Guide from its website, which had been featured on the home page for two years. The California Office for the Patient Advocate (patient rights advisor to DMHC's Director) was deleted from DMHC's organization chart.

  • DMHC lawyers denied the existence of the "rights" identified in the State-sponsored Guide, upon which patients are instructed to rely in order to obtain medically necessary health care.

On March 7, 2003, Governor Davis, Jim Tucker (DMHC Acting Director) and the State's attorneys were notified of Mrs. Finney's intent to file a Request for Entry of Default Judgment, as an Answer to her Complaint had not been receive within ten days of the Notice of the Judge's Ruling.

SUPPLEMENTAL INFORMATION

Mrs. Finney was a federal health care fraud investigator. Dr. Finney was Hewlett-Packard Company's Manager, Health Care Cost Containment. They are not lawyers. They acted in Pro Per * and were neither advised nor assisted by lawyers.

* In Pro Per means acting in one's own person without the assistance of an attorney.

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