State regulators are in an emergency court hearing Wednesday morning in Tallahassee, asking a judge to liquidate Universal Health Care and turn it over to them by April 1.
They say the financial turmoil at the St. Petersburg-based plan has led many health-care providers to stop treating Universal's patients because the company owes them money, the Tampa Bay Times reports.
A spokeswoman for Florida's Office of Insurance Regulation said the hearing began around 9 a.m. and is scheduled to end by noon. (This article will be updated.)
Universal, founded by Dr. A.K. Desai, has mostly Medicare patients, and most are in Florida.
On Monday, a federal bankruptcy judge in Tampa gave preliminary approval for the sale of Universal Health Care for $33.25 million in cash to Citrus Universal Healthcare Inc., a unit of New Jersey-based CarePoint Insurance. The sale would require state approval.