Exhibit 10.120


 


 





HEALTH
NET®


California’s Health Plan


 


 


January
25, 2001


 


 


Catherine
Medel


Prospect
Medical Group


1920
E. 17th Street, #200


Santa
Ana, CA 92705-8626


 


RE:              Amendment
to the Provider Services Agreement to add NCQA Language


 


Dear
Catherine:


 


Health
Net of California, Inc. Affiliates (“Health Net”) has decided to amend the
Provider Services Agreement (“Agreement”) between your Medical Group/IPA
(“PPG”) and Health Net, Inc. Affiliates (“HNI”) to include certain National
Committee for Quality Assurance, (NCQA) language.  Please note that the NCQA language is italicized, and such
language is the only revision we are seeking by this Amendment.  Health Net is requesting your agreement to
the following revisions:


 


The
following language of the Agreement is added to or replaces the contract
language as applicable:


 


1.               PPG Contracts.  No agreement between PPG and a Participating
Provider shall contain any incentive plan that includes a specific payment
made, in any type or form, as an inducement to deny, reduce, or limit Covered
Services to a Member.  PPG shall comply
and shall cause its Participating Providers to comply with State and federal
law regarding physician incentives and Stop loss insurance requirements, where
applicable.  PPG shall furnish HNI with
all PPG’s contracting templates for HNI’s review and approval upon request and
at such time templates are changed. 
Every PPG contract shall provide that it is terminable with respect to
Members by PPG upon HNI’s request.  Upon
request, PPG shall furnish HNI with copies of any amendments to a contract with
a Participating Provider within ten (10) days of execution.  In
addition, any agreement or amendment between PPG and a Member Physician shall
not restrict the rights and obligations of Member Physician to communicate
freely with Members regarding their medical condition and treatment
alternatives including medication treatment options, regardless of benefit
coverage limitations.


 


2.               Medical and Other Records.  PPG shall prepare and maintain
all medical and other books and records required by law in accordance with the
general standards applicable.  PPG shall
maintain such records for at least seven (7) years after the rendering of
Contracted Services and records of a minor child shall be kept for at least one
(1) year after the minor has reached the age of eighteen (18), but in no event
less than seven (7) years. 
Additionally, PPG shall maintain such financial, administrative and
other records as may be necessary for compliance by HNI with all applicable
local, State, and federal laws, rules and regulations and accreditation
agencies.  PPG agrees to the policies established by HNI that describe personal
health information, including medical records, claims benefits and other
administrative data that are personally identifiable.  The HNI  policies
include:  provisions for inclusions in
routine consent, care and treatment of Members who  are unable to give consent, member access to their
medical records, protection of privacy in all setting, use of measurement data,
information for employers and the sharing of personal health information with
employers.  The HNI policies
are


 


2525
Cherry Avenue, Suite 160, Signal Hill, California 90806 Tel (562) 490-4300 Fax (562) 424-7707


 

















 


further
defined in the PPG Operations Manual. 
PPG agrees to submit upon request such reports and financial information
as is necessary for HNI to comply with regulatory requirements to monitor the
financial viability of PPG.  PPG shall
comply with all confidentiality and Member record accuracy requirements.


 


Except as so amended, all
other provisions of the Agreement shall remain unchanged and in effect.


 


After you have had the
opportunity to review this Amendment, please sign in the space provided below
and return this Amendment no later than February 28, 2001 to the following
address:


 


Health Net, Inc.


2525 Cherry Avenue, #160


Signal Hill, CA 90806


 


If you have any questions
please contact me at 562-490-4336.


 


	
  Sincerely

  
	
  /s/ Richard Gors

  	
   

  
	
  Richard Gors

  
	
  Contract Manager

  



 


	
  Prospect Medical Group

  	
  HEALTH NET, INC. AFFILIATES

  
	
   

  	
   

  
	
  /s/ Peter G.
  Goll

  	
   

  	
  /s/ Christopher Ciano

  	
   

  
	
  Signature

  	
  Signature

  
	
   

  	
   

  
	
  Peter G. Goll

  	
   

  	
  Christopher
  Ciano

  
	
  First Name

  	
   

  
	
   

  	
   

  
	
  Senior Vice President

  	
   

  	
  Senior Vice
  President & General Manager

  
	
  Title

  	
   

  
	
   

  	
   

  
	
  1-31-01

  	
   

  	
   

  	
  CHRISTOPHER CIANO

  	
   

  
	
  Date

  	
  Date

  	
  FEB 19 2001

  	
   

  
	
   

  	
   

  	
  Senior VP/GM South

  	
   

  
	
   

  	
   

  
	
  33-0718606

  	
   

  	
   

  
	
  Tax ID
  Number