Hospital terminates contract with Blue Cross Blue Shield

Blue Cross Blue Shield of Arkansas patients, break your legs now because on Sept. 1, the Medical Center of South Arkansas will no longer accept BCBS-insured patients.

Kyle Swift, MSCA chief executive officer, confirmed in an email this morning that the insurer’s contract will be terminated at the beginning of September following a disagreement in reimbursement rates.

Should BCBS be unwilling to re-negotiate before Sept. 1, larger businesses will have the option of operating on direct contracts with the hospital and smaller businesses will be transitioned over time to more favorable payer partners, according to Swift’s email.

“This decision has not come easily or without thorough evaluation,” Swift wrote. “We are well aware of the disruption this may cause in the short-term for both the provider and patient communities; however, we are confident that long-term stability in this market will be compromised significantly, if we do not take this step.”

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11 Responses to Hospital terminates contract with Blue Cross Blue Shield

  1. The Lone Reader says:

    5-1 this gets cleared up before the Sept. 1 deadline. That is unless the hospital just wants to dry up and die.

  2. Me says:

    These
    Are
    Rates
    That hospital
    Agreed on

  3. donaldduck6 says:

    this hospital gave it’s patiants poor service, sorry staff and no care for anyone who came in for service. good ridance to this hospital. little rock or monroe and even shreeport are better. thank god MSCA is dead now.!!!!!!!!!!!!!!

  4. Ken Hamilton says:

    This reminds me of the periodic negotiations between cable TV companies/satellite TV companies and networks. Seems like 9 times of out 10 both sides work something out by the deadline.

  5. MAE says:

    CHS owns this hospital along with several others in the state of Arkansas. Their second quarter earnings for 2012 were $83.4 million. Second quarter for 2011 were at $34.4 million. That says a lot. They are ranked 190 in the Fortune 500. Looks like they could give a little in the negotiations.

  6. The Lone Reader says:

    And 2011 premiums paid to Arkansas Blue Cross & Blue Shield were $185,752,892 of which a little in excess of $143,000,000 were paid to providers.

    And those numbers DON’T count Pulaski and 4 or 5 counties in central Arkansas which are Arkanas BCBS but under a different entity than the rest of the state.

  7. Alison Stone says:

    To donaldduck6 – You cannot even spell patient’s or Shreveport so I highly recommend you keeping your opinions to yourself. Your comment is completely ridiculous!

  8. daffyduck says:

    I’d say donaldduck6 hit the nail on the head. donaldduck6 your comments/opinions are welcome anytime. Magnolia hospital has also had a recent expansion and the hospital at Homer, LA. is excellent for minor emergencies. Little Rock, Ruston, Monroe, and Shreveport are all great choices in lieu of MCSA…..especially if you prefer getting well over getting worse.

  9. poo52 says:

    This is an injustice to the citizens of Union County. Come to Magnolia Regional Medical Center.

  10. Magnolia waiter says:

    Magnolia Regional Medical Center may have had a recent expansion, but there are folks from here who drive to Eldo to be seen for emergencies. Reason? A visit to the ER in Magnolia may mean a 4-5 hour wait before you are seen. I know folks who drove to Eldo, got in, saw a doctor and got treated and drove back home before they would have ever even seen a doctor in Magtown. Guy went in a couple weeks ago at 9:30 p.m. thinking he had had a stroke, had passed out, finally got seen and admitted to a room around 4 a.m. Please keep your hospital open for us!

  11. James Wilson says:

    My employer has BCBS. I’ve had some heart work done at MCSA but if they quit BCBS I won’t have a choice but to find a new care provider.

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