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The Division of Insurance has ruled that if the HMO pays the group physician practice and the group practice does not pay the physicians, the HMO can be required to pay the group practice a second payment so that physicians can get paid. Several of the HMOs have recently terminated their contracts with physician groups because the group practices were not paying the bills to the physicians and the providers. Financially, the HMOs can not afford to have the group physician practices not paying their bills to the providers and physicians.
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We heard recently that HMOs had to pay physicians twice. What does that mean?
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