Adventist Health and Anthem Blue Cross reached an agreement in their contract negotiations just days shy of the contract’s expiration date, which was extended twice in the past month.
The agreement means all Anthem insurance holders will continue to receive in-network care at all Adventist hospitals in Mendocino County.
“We are pleased to have reached a mutual agreement with Adventist Health that provides our members with continued access to care at Adventist Health facilities,” said John Pickett, Anthem’s regional vice president, in a press release. “The successful resolution of our discussions builds on our long-term partnership and shared commitment to providing access to high-quality care for those in the communities we serve.”
It wasn’t immediately clear what type of agreement was reached between the hospital system and insurance company. Adventist Health continuously asked Anthem to pay the hospital system higher reimbursement rates, claiming it was paid much lower than other hospital systems in the area.
“We are pleased to continue our long-standing partnership with Anthem Blue Cross and continue to provide excellent healthcare locally,” said Adventist Health North Coast Network President Judson Howe in a statement. “The new agreement aligns both organizations in our shared community health and well-being goals.”
In the first round of contract negotiations, a representative for both Adventist and Anthem declined to comment on the current reimbursement rates. The representatives did not immediately respond to questions regarding the agreement.
Contract negotiations between the two have been ongoing for months. The contract was first set to expire July 18, but Anthem and Adventist mutually agreed to extend negotiations for two weeks as they looked to reach an agreement. The negotiations were extended a second time on Aug. 1. After the second extension, the contract was set to expire on Aug. 16.
Note: Lucy Peterson covers local government and policy for The Mendocino Voice in partnership with a Report For America. Her position is funded by the Community Foundation of Mendocino, Report for America, & our readers. You can support Peterson’s work with a tax-deductible donation here or by emailing [email protected]. Contact Peterson at firstname.lastname@example.org or at (707) 234-5291. The Voice maintains editorial control and independence.