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This site visit was a return trip to southern California to examine the state of managed care. Between the Forum's last visit (in late 1998) and this one, the marketplace underwent considerable change, including significant movement away from global capitation, the collapse of physician practice management firms, and the development of new insurance products. Site visitors were briefed on managed care trends in the state, and panel discussions focused on issues related to physician group solvency, employer and consumer expectations, managed care regulation, and plan and provider strategies for surviving and prospering in the difficult southern California market. Site visitors met with representatives of two physician groups — HealthCare Partners Medical Group and Facey Medical Foundation — that were continuing to practice under global capitation and continued to believe the delegated risk model holds promise for managing costs and improving the quality of care. They also visited California Hospital Medical Center to discuss the challenges facing an inner-city safety-net hospital and engaged representatives of Wellpoint Health Networks in a discussion of the insurer's business model for meeting needs in the individual and small group markets.

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