The Johnson County Healthcare Center and Blue Cross/Blue Shield have reached an agreement for the hospital and clinic to continue providing services to BCBS clients, according to Hospital Administrator Sandy Ward.
Ward explains the agreement.
The JCHC has agreements with a number of other PPO's, Ward said, with similar agreements for fee schedules and discounts in place now, but he believes these PPO's will be seeking to renegotiate the contracts in the near future. Some of these agreements were negotiated in the 1990's when the healthcare center's costs were lower.
Costs have increased for the JCHC since then, but they have been required by a number of PPO's to increase discounts to the provider networks for the healthcare center to continue as a PPO member.
According to numbers provided by Ward, the clinic writes off nearly $50,000 per year in discounts when their prices are higher than the PPO's fee schedule, and last year the hospital had nearly $485,000 in insurance write-offs.
Through this month in FY2012, they have written off $211,000 and are projecting to write off more than $600,000by the end of this fiscal year.
By comparison, five years ago the JCHC wrote off less than $200,000.