Only a handful of major insurers and HMOs dominated the Minnesota health insurance market in 1987. Blue Cross, PHP and HealthPartners were the dominant players, and all had HMOs that were poorly reserved. PHP, an HMO with 400,000 enrollees, was on the brink of insolvency. PHP had 4,600 medical providers on its panel, over one-third of whom joined a "PHP Oversight Committee" whose goal was to take over the organization. If PHP became insolvent, the other HMOs were not in a position to offer coverage to its enrollees. PHP and the Oversight Committee were engaged in a court fight in Hennepin County District Court, and, to break the logjam, the parties asked Governor Perpich to intervene. On August 15, 1987, Perpich agreed to intervene and appointed Hatch and Health Commissioner Mary Ashton as mediators. Over the next week, the two conducted marathon negotiation sessions culminating in a verbal settlement at 4:00 a.m. the following Friday. The PHP settlement involved a change in the composition of its board of directors.  