A day after the state of Massachusetts filed suit against the University to protect the use of the "Harvard" name in Harvard Pilgrim Health Care (HPHC), University officials defended their right to control the use of the name.

After Mass. Attorney General Thomas F. Reilly said Wednesday that Harvard's actions "placed a cloud" over the HPHC rehabilitation, University officials said they had no intent to derail the process.

"The University is prepared to be flexible and supportive," said Paul S. Grogan, vice president for government, community and public affairs. "We do not have a financial motive. We do have an obligation to protect the good name of the University."

Harvard spokesperson Joe Wrinn said that the University raised the issue before a final plan had been developed so its concerns could be addressed constructively and not become a deal-breaker.

"We want it crystal clear that we control our name," Wrinn said. "We don't want to complicate matters at the end."

Grogan added that the state's suit would have no effect on Harvard's ultimate decision on investing in HPHC, an option first proposed by the state.

"That's really a separate matter," said Grogan. He added that Harvard will not invest in HPHC without the state offering some method of risk mitigation, which the state has not yet promised.

HPHC, a health maintenance organization (HMO) serving 1.1 million members in Massachusetts, came under state control in early January after it encountered nearly $200 million in losses last year. The state is currently looking for a way to restore the company to financial health.