Our affiliated entity, PrimeCare Medical Network,Inc. holds a limited Knox-Keene license in the state of California. These licenses are granted pursuant to the Knox-Keene Health Care Services Act of 1975. This license benefits affiliated physicians in the following ways:

• Ability to assume institutional risk allows greater flexibility in contracting
• Improves negotiation leverage which results in improved contract rates and higher percentage of the health care dollar
• Assumption of additional delegated responsibilities and increased control over the cost and quality of these services
• Provides protection from plan requirement of additional financial reserves