June 19, 2000
FOR IMMEDIATE RELEASE
CONTACT: CHRISTOPHER GOETCHEUS
(617) 521-7333


TEMPORARY RECEIVER REQUESTS THE RELEASE OF HARVARD PILGRIM HEALTH CARE FROM RECEIVERSHIP

(BOSTON, MA) Commissioner of Insurance Linda L. Ruthardt as Temporary Receiver and Attorney General Tom Reilly today asked the Supreme Judicial Court for Suffolk County to vacate the Harvard Pilgrim temporary receivership order which it had granted on January 4, 2000. In accordance with the Court's approval of a rehabilitation plan for Harvard Pilgrim on May 24, 2000, Commissioner Ruthardt today also announced the appointment of the following persons to the HMO's board of directors.

Charles D. Baker, President and Chief Executive Officer of Harvard Pilgrim Health Care, Inc.
Connie Smith Barr, M.D., Associate Medical Director of Dedham Medical Associates and a member of the Harvard Pilgrim Physician's Association.
John H. Budd, a lawyer with the Worcester law firm of Mirick, O'Connell, DeMallie & Lougee, LLP. Mr. Budd is the former Senior Vice President, Secretary and General Counsel of the Paul Revere Companies and is presently a director of UMass Memorial Health Care.
Jack T. Evjy, M.D., a Methuen medical oncologist who has recently completed his term as president of the Massachusetts Medical Society. He practices medical oncology at Commonwealth Hematology Oncology in Methuen, Massachusetts.
Zoila Torress Feldman, Executive Director of the Great Brook Valley Health Center, Inc. in Worcester. She is President of the Massachusetts League of Community Health Centers Board of Directors.
Katherine A. Hesse, a lawyer in the Boston law firm of Murphy, Hesse, Toomey & Lehane. She is a Certified Employee Benefits Specialist and has served as President of the International Society of Certified Employee Benefit Specialists.
Herman B. ("Dutch") Leonard, Academic Dean for the Teaching Programs and the Baker Professor of Public Sector Financial Management at Harvard University's John F. Kennedy School of Government.
John E. McDonough, Associate Professor, Heller School and Senior Associate, Schneider Institute for Health Policy at Brandeis University. He was a member of the Massachusetts House of Representatives for twelve years and was Chairman of the Joint Committee on Health Care from 1995-1997.
Barry L. Shemin, Senior Vice President and Corporate Actuary, John Hancock Financial Services.
Julius T. Williams, Jr., President and Founding Principal of the management consulting group Christensen/Williams & Associates. Mr. Williams is Immediate Past Chairman of the American Red Cross of Massachusetts Bay.

Commissioner Ruthardt commended the individuals who agreed to be part of the new board of directors. "We have found a group of sincere, knowledgeable volunteers who are committed to doing their very best to restore Harvard Pilgrim's fiscal health," Ruthardt said.

"....These new board members will be providing a public service-not only by working to protect Harvard Pilgrim's members and providers, but also by helping maintain stability in the health care system here in Massachusetts," said Attorney General Tom Reilly.

With the naming of the new board of directors, the Temporary Receiver has completed the necessary steps required under the Rehabilitation Plan to release Harvard Pilgrim from receivership. With the Court's approval, Harvard Pilgrim will now operate under an Administrative Supervision Order with Insurance Commissioner Ruthardt acting as the Administrative Supervisor. Administrative supervision is a lower level of regulatory oversight than receivership which permits the Commissioner to continue to monitor Harvard Pilgrim's performance.

Through the first four months of 2000, Harvard Pilgrim's operating results have been consistent with its 2000 Business Plan.