Fairview, Blue Cross reach agreement on contract

Dec. 14--Fairview Health Services and Blue Cross and Blue Shield of Minnesota have reached agreement on a contract for next year, ending a dispute that threatened to block more than 250,000 patients from seeing their doctors.

Under the agreement announced Wednesday, Fairview clinics and hospitals to remain as participating providers in Blue Cross' provider networks.

The contract was set to expire at midnight on New Year's Eve. The new contract stretches through the end of 2018.

The resolution didn't come before the close of open enrollment earlier this month for Medicare beneficiaries, including 45,000 with Blue Cross coverage who visited a Fairview physician in the previous year.

"We are pleased an agreement has been reached, so patients with Blue Cross coverage can continue to access their Fairview providers and services at the in-network benefit levels of their plan," said Dr. Beth Thomas, Fairview chief medical officer, in a statement.

"Blue Cross is glad our members can continue care with their Fairview caregivers," said Garrett Black, senior vice president of health services at the insurance company, in a statement. "The agreement allows us to provide uninterrupted care and coverage to our members while addressing rising healthcare costs."

Eagan-based Blue Cross is one of the state's largest health insurers. Minneapolis-based Fairview is one of the state's largest operators of hospitals and clinics, running the University of Minnesota Medical Center in Minneapolis and Fairview Southdale Hospital in Edina.

Neither side released particulars on terms of the new contract.

After the dispute went public in November, Fairview said it was negotiating for "the necessary reimbursement level to fund our mission and support exceptional patient care." In a statement to the Star Tribune last month, Fairview said the health system has "a strong focus on delivering exceptional care and service while working to reduce the total cost of care."

Blue Cross posted a statement on its website in late November that didn't mention Fairview specifically but explained why the insurer makes network changes. "If we determine that a clinic or hospital is asking for a pay increase that is well beyond market standards," Blue Cross said, "then we have an obligation to challenge those assumptions.

Twitter: @chrissnowbeck

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