When Harvard University considered becoming part of a team to bail out the failing health insurance company Harvard Pilgrim Health Care (HPHC) it may have been acting out of self- interest. The University's traditional ties to the unaffiliated insurance company means the administration has a vested interest in saving it from financial difficulties.

"[Harvard] is sitting at the table willing to consider involvement," said University Spokesperson Joe Wrinn. He said there is no established plan at the moment, but the University, the state of Massachusetts and the other participants in the negotiations are still throwing many different ideas around.

Although HPHC is an independent company that has no direct connection to the University, despite its name, its recent problems could impact the University in several ways, Wrinn said.

In 1999, HPHC incurred losses of $200 million--much larger than those expected. Then, on Jan. 4, it lost its independence and came under the receivership of Massachusetts, a process instituted by the state to aid insurance companies that have failed financially. The company currently insures 1.1 million members in Massachusetts alone and has operations in several other New England states.

Since the insurer has gone under state control, state officials have been seeking ways put the company back on its feet. They have expressed a strong preference for creating a plan to keep the HPHC as a nonprofit institution, instead of selling it to an already established for-profit insurer.

In these plans, Harvard and other nonprofit institutions, such as hospitals, could invest up to $225 million in HPHC to keep it running.

"The receivership team is looking at the available nonprofit alternatives prior to moving in the direction of for-profit sale," said Christopher J. Goetcheus, spokesperson for the Massachusetts Division of Insurance.

Wrinn said that regardless of the final plan, Harvard would not be the "principal investor" in any plan. He would not offer any estimate of the maximum portion of the $225 million needed by the insurer that Harvard would spend. And he declined to say where the money would come from, if Harvard does decide to invest.