HMC sends out mailing to BCBS subscribers asking for support

May 30--Hendrick Health System's reimbursement rate dispute with Blue Cross Blue Shield was spotlighted again this week after the hospital sent out thousands of individual mailings to customers potentially affected by the dispute.

Tim Lancaster, Hendrick's chief executive officer, said the mailing was sent to people in Hendrick's patient systems that "might be affected" by the dispute.

"It wasn't a mass mailing to the general public," he said.

The entities have until June 30 to reach an agreement on how much the insurance provider reimburses Hendrick and certain affiliated physicians and anesthetists.

Hendrick maintains that it has not had a reimbursement rate increase in four years, noting in the letter from Lancaster that it "has been asking BCBS to pay us rates similar to other hospitals our size in Texas that provide similar services."

Blue Cross Blue Shield has said that Hendrick has asked for a 40 percent raise in reimbursement, a change that the insurance company said would add millions of dollars yearly to members' costs -- equivalent to 27 times the current rate of inflation.

Each envelope sent out by Hendrick contains a postage-paid reply card, encouraging Blue Cross Blue Shield customers to show support for the hospital by mailing it to Shara McClure, the insurer's vice president of network management.

The card came from suggestions by local businesses, Lancaster said.

"So we thought the idea of giving a card to people would at least give them a voice, depending on what their response was," Lancaster said. "They could respond back in whatever way they chose to do."

Feedback, Lancaster said, has shown "appreciation for the option and the ease with which we allow them to do it."

Dr. Dan McCoy, Blue Cross Blue Shield of Texas' chief medical officer, said on Thursday that he was "surprised" in particular by that portion of the mail-out.

"I wish the 34 cents had been spent on health care instead of those postcards," he said, naming the amount of return postage Hendrick put on each card.

McCoy said he worried that putting members "in the middle of these negotiations may cause some anxiety for them," referring again to the reply cards.

"I think we can go on the record we're committed to not doing that," he said.

In addition to the reply card, each envelope contains a letter from Lancaster outlining the situation, and a series of answers to frequently asked questions -- including what to do if the ongoing disagreement can't be resolved.

"We're trying to give people information," he said. "As something like this happens, everybody gets worried, and sometimes the rumors that are out there depart from what, really, the facts are."

The ultimate purpose behind the mailing, he said, is to "get information out to people to not only answer some of their questions they might have but also give them some other sources to go to in case they have additional questions."

Lancaster and McCoy said both sides were still hopeful there would be a resolution to the situation, though neither was certain when that might come.

Negotiations between the hospital and Blue Cross happen "all the time," McCoy said.

"I think it's fair to say that I can't predict what's going to happen in this particular negotiation," he said. "I can predict that the 40 percent increase is unreasonable. ... We're still speaking on behalf of our members that are there in Abilene to say that we're going to work to get affordable health care services for them."

If not resolved by a June 30 deadline, Hendrick services, as well as Hendrick Provider Network and Hendrick Anesthesia Network physicians, will be considered out-of-network for BCBSTX patients, and probably more expensive for policyholders than in-network services.

Emergency patients can seek care at either of Abilene's hospitals regardless of coverage. Those who have scheduled elective procedures after the dispute's deadline should discuss timing with their physicians.

Abilene Regional Medical Center has said its hospital and its employed physicians remain in-network providers for patients covered by Blue Cross Blue Shield of Texas.

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