Hospital, Highmark reach agreement

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July 31, 2010

By Mary Spicer Meadville Tribune The Meadville Tribune Sat Jul 31, 2010, 07:00 AM EDT

MEADVILLE — Meadville Medical Center and Highmark have successfully completed contract negotiations on Highmark’s employer-based health care coverage, which covers approximately 29,000 Crawford County residents. The new three-year agreement announced Friday will enable Highmark subscribers accessing MMC to continue receiving care without disruption of services and without having to go out of network, MMC Chief Innovations Officer Barry Bittman said Friday.

The largest change in the new contract falls into the “reimbursement for services” category. “The reimbursement to the hospital for existing services changed in many cases,” he said. As for the impact on premiums, both sides are now doing a full accounting “to see exactly where the numbers are,” Bittman said.

“The agreement is fair to both sides and it really enables us to work closely with Highmark to contain costs to insure that health care remains affordable for people in our area,” he explained. “We will provide high-quality care while working to improve aspects of prevention and disease management so we can keep people healthier.”

There are also some changes in the agreement that have to do with other services, according to Bittman. While MMC and Highmark will continue to work on those parts of the agreement during the next few weeks, “these will essentially be new services for the community,” he said, noting that additional information will be made public as soon as details have been worked out.

Approximately 1,000 senior citizens in Crawford County with Highmark’s Medicare Advantage HMO or PPO, MedigapBlue policy or Signature 65 coverage are not affected by the negotiations completed Friday.

In late May, thousands of Highmark clients received written notification that the contract was expiring on June 30. However, both parties agreed to extend the expiration date to the end of July.

Friday, one day before the extended deadline ended, MMC Chief Executive Officer Phillip Pandolph commented, “After several months of intense discussions, we are pleased to announce mutual agreement on a comprehensive contract that enables MMC to continue offering quality care to Highmark members. I personally commend Highmark’s team for their dedicated commitment to arriving at an acceptable agreement that serves the needs of those we are privileged to serve.”

“This agreement enables MMC to continue to offer quality services for Highmark members,” said Highmark Market President Daniel O’Malley. “From a financial perspective, our ongoing relationship impacts not only the ability to provide quality care, but also our collective efforts to keep health care costs at an affordable level for local businesses.”

“This successful agreement in a rather challenging economic era clearly demonstrates that a community hospital and a leading health care insurer can effectively work together to serve the needs of a community,” Bittman said. “I’m personally pleased to know that this commitment will continue well into the future along with a host of innovative programs and services that greatly contribute to the health and well-being of our community.”

Mary Spicer can be reached at 724-6370 or by e-mail at mspicer@meadvilletribune.com.

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Hospital, Highmark reach agreement

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