With a June 30 deadline looming, Anthem Blue Cross and Blue Shield of Connecticut and New Milford Hospital are trying to hash out a new contract agreement.
Anthem recently notified members that its contract with the Litchfield County hospital is set to expire at the end of the month. As part of the negotiations, Anthem officials said the insurer is trying to adopt changes in its payment methods that would incorporate more of a pay-for-performance model.
“Anthem is modifying our practice of paying primarily for volume to one that pays for better outcomes and improved quality and safety-all of which contribute to reduced overall costs,” Anthem said in a prepared statement.
The current contract between the hospital and insurer expires June 30. If no agreement is reached by then, beginning July 1, New Milford Hospital would no longer participate in Anthem’s network, making it an out-of-network provider.
That means patients who are covered by Anthem would have to pay out of pocket for certain services at the hospital. Prolonged contract negotiations between hospitals and insurers are nothing new. In fact, it’s becoming more of the norm, especially as health care providers and insurance companies face increased pressure to rein in costs.
