CT health insurance industry says it's working with hospitals following criticism from ECHN's CEO [Journal Inquirer, Manchester, Conn.]

Dec. 18—In the letter, Weymouth criticized the state's health care insurance industry for not easing some of the immediate burden on ECHN's Rockville General and Manchester Memorial hospitals, which were in dire financial condition, as was Waterbury Hospital, which is also intended to be sold to Yale New Haven Health.

With the cyberattack leaving ECHN unable to bill for services for six weeks, Weymouth said that health care insurance companies in the state were "unwilling to support our repeated requests for cash advances, pro-ration adjustments for contractual rate increases and for some, even to extend the time we need to submit bills given the attack."

She wrote that insurance companies in the state are in far better financial positions than hospitals.

"We find these actions contradictory to the known operating margins of these firms and their commitment to compensate providers for quality care," Weymouth wrote in October.

Susan Haplin, executive director of the Connecticut Association of Health Plans, offered a brief explanation on Monday.

"Many, if not all, carriers have had discussions with both hospitals about how they can assist during this crisis," she said. "I am not at liberty to discuss the details of those arrangements, but suffice it to say there have been good-faith initiatives offered and/or put in place."

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Medical professionals and state lawmakers have repeatedly said that if the sale of the three hospitals doesn't go through — and they remain under the control of for-profit, California-based Prospect Medical Holdings — they could close.

Aside from the billing issues related to the cyberattack, ECHN hospitals have also struggled to pay vendors.

In order for the sale of the hospitals to be finalized, the Office of Health Strategy must approve a certificate of need, a regulatory process that has been ongoing since April.

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