West Warwick, R.I.-based Neighbors Emergency Center will close Aug. 4, affecting more than 30 full-time and part-time employees, WPRI reports.
Setul Patel, MD, CEO of Houston-based ED operator Neighbors Emergency Center, attributed the closure to "noncooperation" with Blue Cross Blue Shield of Rhode Island.
"The sole cause for the closure is a noncooperation of Blue Cross Blue Shield of Rhode Island," Dr. Patel told WPRI. "We came into this market to provide value-added emergency care. We were willing to do it at a cheaper price than the hospital, and Blue Cross Blue Shield of Rhode Island has basically told us they do not recognize our center as an emergency department." Dr. Patel claims the Providence, R.I.-based insurer offered it urgent care rates and owes Neighbors Emergency millions.
BCBSRI spokesperson Jill Flaxington said in a statement to WPRI, "While the law requires us to reimburse out-of-network hospital emergency departments comparable to in-network emergency department rates, because Neighbors Emergency Center is not a hospital it is subject to a different reimbursement. We offered Neighbors Emergency Center an in-network provider contract, but we did not receive a response. We remain open to entering into an in-network contract that ensures affordability for Blue Cross customers."
Neighbors Emergency Center opened in West Warwick last November as Rhode Island's first freestanding ED, the report states. In addition to its closure, Neighbors Emergency pulled a proposed ED in Bristol, R.I.