Harvard Pilgrim is the area's largest Health Maintenance Organization. Early this year, the organization found itself faced with huge losses from 1999--losses that prompted Massachusetts officials to place Harvard Pilgrim into receivership.

Officials are now attempting to avoid Harvard Pilgrim's liquidation by the government.

The Globe reported that Harvard officials--as well as representatives from another possible investor, Perot Systems--met with state-hired investment bankers at a law firm in Boston Saturday.

The plan--as described by the Globe--calls for investors to exchange funding for "surplus notes," which would benefit investors through high interest rates. Investors would be assuming a significant amount of risk--and would not be able to sell their bonds. The plan would have to include the sale of 14 Pilgrim-owned buildings, currently leased to the medical group Harvard Vanguard.

The bankers proposed a plan to salvage Harvard Pilgrim, sources familiar with the talks told the Globe. But the plan's feasibility seems questionable. According to the article, Mass. Attorney General Thomas F. Reilly said the alternatives to the plan are selling Harvard Pilgrim to a for-profit insurance company and liquidation.

Company officials did not return calls for comment yesterday.