Beaumont Hospital gives notice it will not participate with Blue Care Network after Jan. 12, 2012

Here is a reprint of a statement released today by Blue Cross:

Beaumont Hospital has given notice to Blue Care Network that it would no longer participate in hospital networks serving BCN health plans on or after Jan. 12, 2012, unless the Blues agree to a double-digit percentage increase in payments. This large increase is intolerable. For nearly a year, Blue Cross Blue Shield of Michigan and Blue Care Network have proactively engaged in talks with Beaumont Hospital about reimbursement. BCBSM and BCN could not accept the double-digit increase as our customers and subscribers struggle with the cost of health care services that drive up premiums.

The Blues proposed an increase to Beaumont that fairly covers the cost of medical services they provide to Blues members and delivers a fair financial margin (profit) to the hospital. Blue Cross also proposes a value-based incentive arrangement that rewards the hospital when it develops initiatives that provide quality care at a lower cost.

Blue Cross Blue Shield of Michigan PPO, Traditional and HSA plans are not affected by Beaumont’s actions. BCBSM Medicare Advantage plans also are not affected.

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