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More bad news for Daughters of Charity: Regulators halt key source of new customers
San Francisco Business Times

The financially rickety Daughters of Charity Health System, already buffeted by the collapse of a proposed $843 million sale of its six hospitals, confirmed Tuesday that it is laying off 4 percent of its workers. The latest blow: State regulators have ordered 10 California health plans to stop sending new customers to the system’s Medical Foundation, an affiliated medical group, due to solvency concerns.

The move involves most of the state’s major HMO players and will essentially shut off a key source of patients, new HMO enrollees, for the foundation.