Ben Hensley<\/a><\/p>\nA months-long contract dispute between Community Health System and Blue Shield of California could be over as early as Monday.<\/p>\n
Finish line near<\/p>\n
Speaking at the Fresno Rotary Club meeting in Downtown Fresno on Monday, Community Health System President and CEO Craig Wagoner said negotiations are nearing completion.<\/p>\n
\u201cWe\u2019re really, really, really close,\u201d Wagoner said. \u201cWe have a verbal agreement. We\u2019re just passing papers now.\u201d\u00a0<\/p>\n
He said the deal could be inked by the end of the day.<\/p>\n
Months of disruption<\/p>\n
The two sides have been locked in negotiations since their previous provider agreement expired Jan. 31, leaving some Blue Shield members without in-network access to Community hospitals, facilities and physicians.<\/p>\n
The dispute drew attention from local employers, public agencies and elected officials, in particular, after City of Fresno employees were caught in the middle of the standoff.<\/p>\n
Reimbursement rates at center<\/p>\n
Throughout negotiations, Community has maintained that improved commercial reimbursement rates were necessary to help offset mounting financial pressures facing the health system. Community leaders have repeatedly pointed to rising labor, pharmaceutical and operating costs and the system\u2019s heavy reliance on Medi-Cal and Medicare patients, which account for approximately 85% of its patient volume.<\/p>\n
Wagoner later described the negotiations as part of the provider\u2019s broader effort to secure improved reimbursement rates from commercial insurers.<\/p>\n
\u201cWe have to have better reimbursement,\u201d Wagoner said. \u201cWe need to be paid fairly for the services that we provide.\u201d<\/p>\n
Thawing standoff<\/p>\n
The comments mark a significant shift from earlier this year; in February, Community and Blue Shield publicly disagreed over the status of negotiations after allowing their contracts to expire. Community argued that reimbursement rates were insufficient to support the rising cost of providing care, while Blue Shield argued it had offered rate increases and other payment enhancements during negotiations.<\/p>\n
By March, Community officials said the two sides were still not close to reaching an agreement, while Blue Shield said it remained engaged in negotiations and intended to respond to Community\u2019s latest proposal.<\/p>\n
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