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Wednesday, 11 February 2015 10:42

Bronson, Blue Cross agree to new reimbursement contract

Written by  MiBiz Staff
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Bronson Methodist Hospital and Blue Cross Blue Shield of Michigan have agreed to the terms of a new five-year agreement that will preserve access for BCBS members at the Kalamazoo-based health care organization.  

The two parties issued a joint statement on the agreement this morning.

News of the deal follows statements in mid-January that the two sides remained “far apart” in their contract negotiations. Had a deal not been reached, Bronson’s hospitals would have become out-of-network care providers and Blue Cross Blue Shield members receiving care there would have had to pay much higher out-of-pocket costs beginning Feb. 16.

In a statement, Jeff Connolly, senior vice president at BCBS and president for the West Michigan region, said he was “very pleased” to finalize a reimbursement agreement that “maintains access to Bronson hospitals, promotes insurance affordability and invests in Bronson’s commitment to deliver quality health services to the communities it serves.”

The new contract also shifts to a value-based system that provides reimbursement based on the quality of care versus a fee-for-service model that pays based on volumes. More than 85 percent of the insurers payments to hospitals now follow a similar arrangement.

The agreement covers the 434-bed Bronson Methodist Hospital in Kalamazoo, the 179-bed Bronson Battle Creek Hospital, and the 35-bed Bronson LakeView Hospital in Paw Paw.

Read 2216 times Last modified on Wednesday, 11 February 2015 11:12

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