Contract negotiations ongoing between Beaumont, Blue Cross Blue Shield [Detroit Free Press]

Jan. 03--Talks continue between Blue Cross Blue Shield of Michigan and the Royal Oak-based Beaumont Hospitals system, as they attempt to reach agreement on a new hospital contract.

The Blues and the three-hospital Beaumont system have been at odds for months over a new three-year contract, to replace one that expired Dec. 31.

Beaumont has threatened to stop accepting the insurance of some 100,000 subscribers covered by Blue Care Network, a Blues subsidiary, for inpatient services by Jan. 12 if the dispute is not resolved.

Beaumont patients seeking outpatient care as well as those covered by other Blue Cross insurance are not affected by the dispute.

Colette Stimmell, Beaumont spokeswoman, and Helen Stojic, a Blues spokeswoman, both confirmed that talks are continuing this week. Stimmell said the health system is "hopeful of reaching an agreement soon."

The Blues want to give Beaumont a 3.5% increase over three years in reimbursements, on top of a 2.5% overall increase it will give all hospitals in 2012. It also seeks new performance standards that will improve the quality of patient care while eliminating unnecessary tests and procedures.

Beaumont is asking for 9% -- a 6% increase for 2012 and 1.5% increases each year in 2013 and 2014.

Contact Patricia Anstett: 313-222-5021 or [email protected]

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