Davis Signs HMO Reforms
Gov. Gray Davis approved one of the most ambitious health care reform packages in the nation, granting more than 20 million Californians the right to sue their HMOs, obtain second medical opinions and appeal their health plans’ decisions to independent experts.
Davis touted the 20 bills as a balanced bipartisan effort that ensures HMO accountability while mandating coverage of mental illness treatment, contraception, cancer screening and other services. The legislation also sets up a new Department of Managed Care to oversee HMOs and address the financial condition of medical groups.
The health care industry had strongly opposed the bill allowing privately insured state residents to sue their health plans, but supported the legislation establishing an independent review process for resolution of disputes.
Davis Drops NFL Bid
Billionaire Marvin Davis withdrew his bid for a National Football League franchise after the NFL said it would require him to dispose of his interests in a Missouri casino.
However, insiders reportedly said Davis looked at a potential bidding war with Houston over the league’s franchise fee and determined the deal ultimately would be too expensive.
Throughout the process, Davis has insisted he would be buying the team for his two sons and it would be owned by the Davis Children Family Trust, not Davis himself. Still, the league told Davis it would require divestment of the casino, according to a statement released by Davis.
After the announcement, Hollywood Park moved to allow the NFL to pick up Davis’ option on 100 acres of its land across from the Forum that’s under consideration as the site of a new stadium. League owners will meet this week in Atlanta to once again discuss the awarding of an expansion franchise.
MTA Management Shake-Up
Three top executives at the Metropolitan Transportation Authority who were responsible for overseeing rail construction contracts and other major purchases abruptly left the agency.
Michael O’Connor, the MTA’s executive director of procurement, departed after little more than a year on the job. Two deputy directors in the department also were released.
MTA Chief Operating Officer Allan Lipsky said the unit hadn’t kept pace with other departments in making improvements.
The MTA’s contracts for construction work on the Metro Rail subway and the purchase of equipment and other materials have been a source of controversy in recent years.
One major dispute that occurred before O’Connor was hired involved the handling of a $65 million construction management contract for a Red Line subway extension to the Eastside. The agency’s financial problems forced a halt to the subway extension last year.
Stunt Workers Claim Bias
African-American stunt workers claimed minorities are losing jobs in movies and television because studios hire whites and dress them up in makeup and wigs to pose as black, Latino or Asian characters.
In protest, Marvin Walker, co-founder of the Alliance for Stunt Performers of Color, called for a protest of companies owned by Viacom Inc. because it hired a white stunt coordinator for its current remake of the 1970s black action film “Shaft.”
John Singleton, producer and director of the film, said he hired the man based on his credentials, not his race. Singleton called the claims unfounded and offensive.
Katherine Moore, a spokeswoman for the Screen Actors Guild, said only about 6 percent of stunt work last year went to African Americans, compared to about 80 percent for whites. She said SAG received a dozen complaints from members about the so-called “paint-down” practice this summer, and an investigation is underway.
DWP Signs Up Customers
As it prepares for electricity deregulation, the Los Angeles Department of Water and Power has signed 21 of its major customers to long-term power contracts totaling nearly $1 billion.
DWP officials said they have signed agreements ranging from seven to 10 years with 20 major industrial customers, including McDonald’s Corp., Anheuser Busch Cos., GTE Communications Systems Corp. and Home Depot USA. The DWP has also signed a long-term contract with the Los Angeles Unified School District.
Together, the 20 customers and the school district account for about $100 million a year in revenue for the DWP. To induce the firms to sign on, DWP officials offered discounts of 3 percent to 5 percent on their utility bills.
Starting in 2001, the DWP is expected to enter the deregulated power market, provided that the City Council gives its approval. In preparation, the council last year authorized the DWP to negotiate long-term power contracts with its major customers as a way to prevent those customers from seeking other power providers once the L.A. market is opened to competition.
CAA Buys Into New York Firm
Creative Artists Agency is making a new attempt to broker its Hollywood expertise on Madison Avenue.
The Hollywood talent agency agreed to buy a stake in Shepardson Stern & Kaminsky, a New York firm that functions as an advertising agency, public relations firm and strategic advisor to corporate clients.
Terms of the deal were not disclosed but reports suggest that CAA may have acquired up to 50 percent of the firm. SS & K; has 60 employees and about $12 million a year in billings. The move highlights efforts by Hollywood talent agencies to broaden relations with corporate clients.
The investment is CAA’s second attempt to find a place in the advertising world. Under founder Michael Ovitz, CAA took over the ad account of Coca-Cola Co. in the early 1990s, but the arrangement ended when Ovitz left the firm.
New Year’s Plan Protested
Residents protested a plan by Mayor Richard Riordan for a 45-minute light show at the giant Hollywood sign on Dec. 31 to herald the new millennium.
The mayor’s plan also calls for the event to feature skydivers and a live emcee perched atop the “W” in the world-famous landmark.
After learning of the proposal, residents near the sign fired off a barrage of letters to the Mayor’s Office and retained a lawyer to sue the city for any damages that might result from the event.
In addition, a meeting called to mediate the dispute broke up after city representatives were shouted down.
Riordan, however, refused to abandon the plan, reportedly calling it a once-in-a-lifetime opportunity to welcome the turn of a century.
