OLOL provides update of Blue Cross dispute

Officials with the parent company of Our Lady of the Lake Regional Medical center say they are reaching out to try and negotiate a new contract with Blue Cross and Blue Shield of Louisiana to stay in the insurance giant’s network. But Blue Cross officials are accusing the hospital of releasing inaccurate information. In a letter sent to staffers at OLOL, Scott Wester, the hospital’s CEO, and John Finan, CEO of Franciscan Missionaries of Our Lady Health System, say the hospital has offered proposals that concede reimbursement rate increases, as long as the savings could accrue to patients and local employers. The hospital has also requested mediation with a third party. “Blue Cross has rejected all offers and remains unwilling to pay hospitals and doctors fairly despite having raised premiums to many of their members,” says the letter. “Zero for FMOLHS hospitals and physicians is unreasonable and Blue Cross knows it.” Blue Cross announced earlier this month that FMOLHS was not renewing its contract once it expires Feb. 1. Mike Reitz, Blue Cross president and CEO, says that FMOLHS is releasing inaccurate information in its letters. The system is requesting an 8% payment hike for hospitals and a 12% average overall increase for physicians and allied providers, he says. “Blue Cross has responded with two offers. One would give a 3% increase along with certain requirements, such as to improve transparency of costs. Our second offer does give a 0% increase, but includes some type of rate relief to our customers in FMOL’s markets,” Reitz says.