Gables Entrepreneur’s New Healthcare Venture

MIAMI (CBS4) -Coral Gables medical entrepreneur Miguel “Mike” Fernandez announced a plan on Wednesday to invest up to $100 million statewide to take advantage of new Medicaid changes proposed by Governor Rick Scott, according to CBS4 news partners The Miami Herald.

To get it done, Fernandez plans to form an alliance with Miami Children’s Hospital to build up a series of provider service networks, or PSNs, which operate much like HMOs but are majority owned by doctors and hospitals that participate.

Dubbed Miami Children’s Better Health, the PSN is for Medicaid children and their parents in Miami-Dade County. It will consist of a network that will start with the 160 doctors at Miami Children’s Hospital and will expand to include other doctors and hospitals in the county, Fernandez explained. Plans to expand statewide are also in the works, with networks proposed in Orlando, Jacksonville, Tampa and the Panhandle.

PSNs have been encouraged by interim secretary of the Florida Agency for Health Care Administration Elizabeth Dudek. It was she, Fernandez says, who “planted the seed” for the idea allowing the sides to join forces.

“Historically there has been an adverse relationship between managed care and providers,” Fernandez said.

Gov. Scott has vowed to pass legislation to shift all of the state’s participants from Medicaid to privately operated HMOs or PSNs in an effort to control costs for the $20 billion program that provides insurance for the state’s poor. State Senate and House leaders are also said to be on board with the plan.

Medicaid accounts for about a quarter of the state’s budget.

Miguel “Mike” Fernandez is no stranger to the health care industry. He made roughly $400 million in the sale of Medicare HMO CarePlus to Humana.

CBS4 news partner The Miami Herald contributed to this report.

  • Meyer Lansky

    The crooks are coming out in Florida…

    • Patrick A

      what do u expect the Governor is a CROOK,so all the others will follow.

    • ghostzac

      The doctors and management care are the crooks. Scott is just giving them more rope to hang themselves for greed. It will not work or solve the increase cost. In fact it will destroy the medical system now.

  • Jimbo99

    Meyer hit it on the head. South Florida needs another PSN like we need more unemployed labor ! Of course they’re going to form an alliance with MCH, where else are they going to get their eligible patients ? Reminds me of Prestige & Health Choice Network with an affiliation with all the Community Health Centers. BOD & Execs are the same people.

  • tired

    Every time a politician talks about “privatizing” a subsidized program it winds up costing more! When the statye of Fl turned the case management of clients of Childrens Protective Services over to “private concerns”, the costs for this program TRIPLED!!! Mostlyin administrative costs. What the State is effectively saying is the taxpayers can pay the bills of government subsidized Corporations!

  • Patrick A

    Only in FL,where a Guy whose company was criminally convicted of defrauding Medicare can become Governor,so I am certain he knows how to work the system to get more money from the people.

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