University May Invest in Troubled HMO

The University is among a group of potential investors recruited by the Massachusetts attorney general's office to rescue troubled Harvard Pilgrim Health Care, University spokesperson Joe Wrinn said yesterday.

Wrinn declined to comment on the specifics of any plans, including from where potential funding for any investment might come.

A story in yesterday's Boston Globe reported that Harvard "has told the Massachusetts attorney general it is interested in helping rescue its brainchild by loaning the HMO millions of dollars."

According to the Globe, "Harvard officials and other sources yesterday confirmed the university's interest in a proposal to keep 'the Harvard plan' nonprofit through a money-raising deal involving major Boston teaching hospitals, the data processing company Perot Systems, and other investors... Investors are being asked to lend money in exchange for IOUs called 'surplus notes,' or surplus bonds."

Wrinn emphasized that the University is not a "principal investor."

"Harvard is at the table, but it's a big table with a lot of chairs around it," Wrinn said. "Whatever is involved with Harvard Pilgrim Health Plan, whatever ultimately happens--Harvard will not be the principal investor if it indeed at all chooses to invest in it. The health of Harvard Pilgrim is not directly tied to Harvard University's interest in it."

Wrinn said that although the University did have some involvement with the health plan's beginnings three decades ago, Harvard's relationship with Harvard Pilgrim has never been fiduciary.

"Because of the name, there's an inference that we're responsible for Harvard Pilgrim Health Care, and we are not," Wrinn said.

Recommended Articles

State Attorney General Considers Harvard Plan
Massachusetts State Attorney General Thomas F. Reilly is considering a new Harvard proposal to rescue the financially-troubled Harvard Pilgrim Health
State Files Suit Against Harvard Over Name Use
The state of Massachusetts sued the University yesterday, seeking to ensure that Harvard Pilgrim Health Care can keep its name
Harvard Responds to State's Suit Over HMO's Use of Name
A day after the state of Massachusetts filed suit against the University to protect the use of the "Harvard" name
State Will Rescue HMO Without Harvard Funds
State officials yesterday unveiled a plan to bring Harvard Pilgrim Health Care out of its financial trouble without the involvement
Health Plans To Be Pared Down
Harvard will consolidate health plans for employees from four administrators to two beginning July 1, the University announced last month.
Mass. Health Plans To Merge
Harvard Pilgrim Health Care and Tufts Health Plan have signed a memorandum of understanding as the first step in a process that would merge the two health care providers, a move that would consolidate the respectively second and third largest insurers in the state of Massachusetts.