Beaumont Health System, based in Royal Oak, Mich., may stop accepting insurance from Blue Care Network, the HMO plan of Blue Cross Blue Shield of Michigan, if the two sides fail to reach a new agreement in the next three months, according to a Detroit News report.
Beaumont has been in negotiations with BCBS since February for a new three-year contract with Blue Care Network, the report said. "We've been in negotiations with them for the better part of this year, and quite frankly we're not getting close in terms of a settlement with them and have been somewhat frustrated by the gap that exists," Beaumont CFO Nick Vitale said in the report.
Beaumont believes BCBS is paying the health system significantly less than other hospitals in Southeast Michigan, but BCBS officials said they have offered Beaumont a fair rate increase, according to the report.
Blue Care Network patients represent roughly 4.2 percent of Beaumont's business, while Blue Care Network patients who use Beaumont comprise about 1.5 percent of all BCBS membership.
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Beaumont has been in negotiations with BCBS since February for a new three-year contract with Blue Care Network, the report said. "We've been in negotiations with them for the better part of this year, and quite frankly we're not getting close in terms of a settlement with them and have been somewhat frustrated by the gap that exists," Beaumont CFO Nick Vitale said in the report.
Beaumont believes BCBS is paying the health system significantly less than other hospitals in Southeast Michigan, but BCBS officials said they have offered Beaumont a fair rate increase, according to the report.
Blue Care Network patients represent roughly 4.2 percent of Beaumont's business, while Blue Care Network patients who use Beaumont comprise about 1.5 percent of all BCBS membership.
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