The District is moving to end its relationship with the health-care company owned by embattled campaign financier Jeffrey E. Thompson after auditors discovered significant financial irregularities in its books.
Multiple senior officials confirmed that Chartered Health Plan will not have its contract renewed to manage care for low-income city residents, its only significant source of business, and that insurance regulators are considering a move to place the company in government receivership.
The officials spoke on the condition of anonymity, citing the sensitivity of the negotiations with the company. Representatives from the insurance and health-care finance departments are set to attend a Chartered board meeting Tuesday evening, where they plan to discuss a range of potential regulatory actions.
A Chartered spokeswoman did not respond to a phone call or e-mail for comment late Monday.
Thompson, 57, stepped down as the chairman of Chartered’s board in April — less than two months after federal agents searched his home and offices, thrusting him into the center of a wide-ranging campaign finance probe. He has been implicated in the funding of a vast “shadow campaign” waged in support of Vincent C. Gray’s successful 2010 mayoral campaign.