Blue Cross inks deal with AMH

Alleghany Memorial Hospital entered into a new three-year contract with Blue Cross/Blue Shield of North Carolina, according to a news release from the hospital.

The newly-signed agreement will become effective on July 1. Currently, Alleghany County, New River Behavioral HealthCare and Magnolia Manufacturing are three large local clients of the Blue Cross PPO plan (Preferred Provider Organization).

The hospital and BCBS had remained at an impasse for about a year over the PPO portion of AMH's agreement with Blue Cross. Contract talks broke down last summer and the hospital terminated its agreement with Blue Cross in fall of 2000. AMH stipulated at the time that the agreement with BCBSNC did not adequately compensate the hospital for the services provided to patients.

BCBSNC did not give the hospital a rate increase from 1995 through 2000. In the news release, the hospital said the two parties couldn't reach "mutually acceptable terms for renewal."

AMH's Chief Executive Officer Jim Yarborough said of the impasse, "I sincerely believe we both wanted to renew our agreement last fall, but it seemed we were too far apart in our earlier negotiations and could not reach mutually agreeable terms.

"After we both thought about it over the past few months, I believe we were both ready to meet half way and reach terms of a win-win-win agreement for BCBSNC PPO patients, AMH and BCBSNC," he added. The hospital's earlier agreement still would have continued through June 30 for county employees, regardless of the new agreement. (Anyone covered by the insurance was still covered until the end of the plan period).

Get the rest of this article in this week's issue of the Alleghany News!

Email: news@alleghanynews.com