Health Source Files for Bankruptcy Protection

Health Source IPA, a for-profit physicians group serving 50,000 managed-care patients in West Los Angeles, filed for Chapter 11 bankruptcy protection, which allows a company to seek permission to reorganize rather than shut down and liquidate its assets. Health Source on Tuesday petitioned the Bankruptcy Court for permission to sell its assets--including patients and its network of doctors--to another medical group, said attorney Sam Meisel. Health Source has not closed its doors, and patients will not be required to switch to another group, Meisel said. “We will continue to operate and to pay our post-bankruptcy obligations until we can complete the sale,” Meisel said. Under California law, patients who wish to may change doctors and medical groups at any time.