In light of the Community Health System and Blue Cross Blue Shield contract non-negotiation debacle that essentially left much of El Dorado without hospital insurance coverage, a reader sent me this little tidbit Wednesday morning showing that CHS is approximately $9.3 billion in the hole as of June 30, according to Business Wire.com.
The debt of the second-largest U.S. hospital chain is so significant, in fact, that CHS raised $1.6 billion to refinance its debt, according to Bloomberg.com. Proceeds from purchasing 5.125 percent, six-year notes will be used to close in on $2.2 billion in debt due on long-term loans in 2014.
News of the debt predated Tuesday’s announcement that CHS, the owner of the Medical Center of South Arkansas, will terminate its contract with all BCBS insurers on Sept. 1. The decision came following negotiations between BCBS and CHS in which the insurance company refused to pay the higher rates demanded by the hospital chain.
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They have also had an ad out for a new local CFO. https://chs.taleo.net/careersection/10001/jobdetail.ftl?job=824545&src=JB-12080
Now there is a job only a true masochist would take.
P.S. And that makes sense. Cut off a contract with the largest carrier in the state when you are $9.3 Billion in the red.