Blue Cross Blue Shield of Nebraska, CHI Health Agreement Takes Effect

LINCOLN, Neb. – It’s a deal 15 months in the making, and CHI Health and Blue Cross Blue Shield of Nebraska’s new contract took effect today. While it’s been more than a year of negotiating and an inconvenience to patients, both sides said they’re glad to be moving forward.

During the dispute, CHI Health St. Elizabeth saw its largest drop in the number of baby deliveries and operating room procedures performed at the hospital. However, one day into the new agreement, former patients are already returning and one said the new deal has made a difference.

Since last September, Blue Cross Blue Shield of Nebraska customers were forced to turn away from CHI Health St. Elizabeth, but starting Wednesday they’re walking back in.

“We’re excited to be back in network,” CHI Health St. Elizabeth President Kim Moore said. “It’s been a difficult last several months.”

For Blue Cross Blue Shield, coming to an agreement meant CHI Health would have to lower its prices, and for CHI Health it meant putting its patients first.

“CHI was 10 percent higher than the rest of the market in outpatient charges,” Blue Cross Blue Shield of Nebraska Senior Vice President of Sales and Service Pat Bourne said. “They were 30 percent higher than the rest of the market in inpatient charges, so basically they were overcharging Nebraskans by about 70 million dollars a year relative to the rest of the market.”

The 15 month battle was an inconvenience to physicians and patients, who had to work around the dispute.

“Women who want to have babies and they’ve had a relationship with our hospital, they’ve had their other babies here and now they’re suddenly out of network,” Moore said.

Not knowing when she would go into labor, one Lincoln woman registered to deliver at both Bryan Heath and CHI Health St. Elizabeth.

“I wanted to come to St. Elizabeth because I had my first daughter here and my mother had three of my younger siblings here, as well,” Sara Gist said.

Gist liked CHI Health St. Elizabeth’s facilities and her midwife normally births at the hospital, too.

“I’m a little relieved because I knew what to expect here and I knew they had my best interest at heart,” Gist said.

With a new, two year contract both CHI Health and Blue Cross Blue Shield of Nebraska are pleased with the outcome. While it took months to iron out the details, the timing was right for Gist.

“I’m just glad my baby decided to wait long enough, because I’m due on Friday,” Gist said.

During the dispute, Blue Cross Blue Shield of Nebraska said it didn’t see its business change. CHI Health St. Elizabeth said it’s thankful for the community’s patience and is glad to be returning to business as usual.

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