San Francisco-based Dignity Health has filed an application with the California Department of Managed Health Care for a limited HMO license, according to a Sacramento Business Journal report.
The system has three hospital campuses in Kern County, and the insurance license relates to Medicare members in that county, which suggests Dignity is using it as a test market, according to the report.
The limited license allows Dignity to "share risk with a fully licensed health plan," according to the report. However, Dignity will not be able to engage in directly marketing a plan or enrolling members.
Michael Blaszyk, CFO of Dignity, said the system doesn't have plans to expand its use of the license outside of Kern County, according to the report.
The application for the limited HMO license was filed Feb. 27.
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