§ 38.2-4317. Rehabilitation, liquidation, or conservation.

A. Any rehabilitation, liquidation, or conservation of a health maintenance organization shall be deemed to be the rehabilitation, liquidation, or conservation of an insurer and shall be conducted under the supervision of the Commission. The Commission may enter an order directing the rehabilitation, liquidation, or conservation of a health maintenance organization upon any one or more grounds set out in §§ 38.2-1500 through 38.2-1521 or when, in the Commission's opinion, the continued operation of the health maintenance organization would be hazardous either to the enrollees or to the people of this Commonwealth.
B. For the purpose of determining the priority of distribution of general assets, claims of enrollees and enrollees' beneficiaries shall have the same priority as established by § 38.2-1509 for policyholders and beneficiaries of insureds of insurance companies. If an enrollee is liable to any provider for services provided pursuant to and covered by the health care plan, that liability shall have the status of an enrollee claim. Any provider who is obligated by statute or agreement to hold enrollees harmless from liability for services provided pursuant to and covered by a health care plan shall have a priority of distribution next subordinate to that of policyholders under subdivision 1 (iv) of subsection B of § 38.2-1509.
C. One or more health maintenance organizations may, subject to approval by the Commission, contract to assume all or part of the business operations, subscriber contracts and obligations of another health maintenance organization. The Commission is authorized to make known to other health maintenance organizations and other interested parties the financial condition of a health maintenance organization found by the Commission to be impaired or insolvent.
1980, c. 720, § 38.1-881; 1986, c. 562; 1989, c. 216 .