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August 26, 2000
Salisbury Post; Rowan County, NC

Local News

Blue Cross, NorthEast officials meeting before deadline

BY SCOTT JENKINS
SALISBURY POST

           


CONCORD — When the top executives at NorthEast Medical Center and Blue Cross and Blue Shield of North Carolina meet next week, it could mark the last chance for their two companies to forge a new contract.

Meanwhile, the hospital is working out a direct contract with state employees who are insured by Blue Cross, and the insurance carrier is urging customers to switch doctors by Sept. 1.

NorthEast officials said in June the hospital will end its affiliation with Blue Cross on Sept. 12 unless the two companies can work out an agreement that increases reimbursements to the hospital.

NorthEast says Blue Cross gets a better deal than other insurance carriers. Blue Cross says NorthEast already gets more in reimbursements than other hospitals in the region.

Larry Hinsdale, chief executive officer of NorthEast, said Friday that he hopes personally meeting with Blue Cross CEOBob Greczyn Jr. will mark a turning point in the negotiations.

“We don’t know exactly how far apart we are, but we’re at least going to take a shot at making it work one more time before throwing in the towel,” Hinsdale said.

Hinsdale said he’s hopeful because many issues between the two have been worked out by staff members over the past couple of months. The main issue remaining is reimbursement. Hinsdale said that, although most of his workday is spent talking about the contract, representatives of the two companies haven’t seriously negotiated for a couple of weeks.

The hospital is working out the final details of a new contract with the state to continue treating teachers and other employees, he said. Blue Cross has administered that contract in the past.

Hinsdale said some Cabarrus County businesses have held open enrollment to allow employees covered by Blue Cross to switch insurance carriers. Officials with Philip Morris, one of the county’s largest employers using Blue Cross, could not be reached for comment late Friday.

Blue Cross, meanwhile, has mailed letters to its customers in this area urging them to choose new primary care physicians outside of NorthEast’s network by Sept. 1.

Michelle Vanstory, a Blue Cross spokeswoman, said the company wants to ensure that people it covers aren’t stuck trying to make that switch if no agreement is reached by Sept. 12 with NorthEast.

“Because our No. 1 goal is to not inconvenience our customers, we wanted to be sure we had everything taken care of and all of our customers set up with a new primary care physician,” she said.

Blue Cross doesn’t restrict when or how often customers can change doctors, so they can simply switch back if the insurer and NorthEast work out a contract, she said.

Vanstory said the insurer holds out hope for next week’s meeting between Hinsdale and Greczyn.

“We feel very optimistic that we’ll be able to have very positive meeting, and we hope we’ll be able to resolve this issue to the benefit of our customers,” she said.

 

   

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