BlueCross Says It Is Choosing Parkridge Over CHI Memorial For Its Most Popular Plan

  • Tuesday, May 7, 2024

BlueCross BlueShield of Tennessee said it is choosing Parkridge Hospital over CHI Memorial as a preferred provider for its popular Blue Network S.

BlueCross and CHI Memorial have been at a stalemate in months of negotiations.

CHI Memorial officials said, "Despite our sincere efforts to continue meaningful discussions, BCBST has rejected all our proposals that would keep CHI Memorial hospitals and physicians in their networks, including commercial Networks S & P, Medicare Advantage, and Medicaid.

This means that beginning July 1, more than 150,000 BlueCross BlueShield members in the Chattanooga area will no longer have access to CHI Memorial services including The Chattanooga Heart Institute, CHI Memorial Medical Group (the largest physician network in the area), and specialized CHI Memorial services such as:

  • Cardiac Amyloid Care | Advanced Aortic Care | Minimally Invasive CABG

  • Cardio-oncology Care | Neuro-oncology Care

  • Awake Craniotomies | Advanced Stroke Care

  • Region's Only Mobile Cancer Screening | Broad Range of Virtual Care

  • Advanced Interventional Pulmonology | Region's Only ECMO Services

  • Most Comprehensive Multi-specialty Robotic Surgery Offerings

"BCBST’s claim that physician relationships will be unaffected is not true. Without a hospital contract, our physicians would be unable to provide the full spectrum of care for patients because laboratory, imaging, and other services would be out of network. We have been clear with BCBST from the beginning that we will not separate our physicians and hospitals, since one of the ways we provide high value care is by working together to manage care across an integrated system–from home to hospital and back.

"Since BCBST has rejected all our proposals to keep physicians and hospitals in-network, our physician contract will expire on June 30 along with the hospital contract. We are disappointed that, even though they are sitting on $4.1 billion in reserves, BCBST has refused to agree to a fair contract that helps us cope with our increasing costs.

"It’s important for patients to know that we are still in-network today and our contract with BCBST remains in place through June 30, 2024. We are encouraging members to keep all scheduled appointments at CHI Memorial and not delay screenings, procedures, and tests that are important to their health.

Patients who want to keep access to CHI Memorial can call BCBST at the number on the back of their insurance card and ask them to reconsider their decision. For up-to-date information and a list of all insurance plans accepted by CHI Memorial, please visit KeepCHIMemorial.org."

BlueCross officials said, "After careful consideration, BlueCross has selected Parkridge Health System as the provider partner alongside Erlanger for Blue Network S in Chattanooga.
"We’re excited about bringing Parkridge facilities into Network S and are confident they’ll deliver the high-quality care our members deserve at prices they can afford. At the same time, we value the doctor-patient relationship, so we are doing everything we can to make this transition easier. We’ve made the decision to keep paying for our members’ care from CHI Memorial’s doctors at current rates. This means members can continue to see their current doctor without any added cost from BlueCross.
"Our provider network team spent weeks analyzing bids from CHI Memorial and Parkridge, considering quality, patient experience, and affordability, among other key metrics.
"After our first review of the Network S proposals, we provided feedback to both health systems and asked them to submit a “best and final” offer for our consideration. While CHI Memorial did submit another proposal, it wasn’t substantially better than their original bid.
"Additionally, CHI Memorial told us that if we didn’t pick them for Network S, they would leave all our networks. This is an unacceptable response to our competitive bid process.

Neither offer would allow us to lower premiums for our Network S plans, but CHI Memorial’s proposal would’ve cost our members $40 million more than Parkridge’s offer over three years.

"Parkridge Health System provides almost every service CHI Memorial offers – including cardiology and oncology – along with some that Memorial doesn’t offer such as adult & pediatric psychiatric care, obstetrics, and freestanding emergency care. Parkridge facilities also cover more of the greater Chattanooga area, providing more convenient options for in-network care.

"CommonSpirit did not deliver an affordable bid on the hospital side. But that doesn’t mean they should break up doctor-patient relationships and disrupt our members’ regular care. Especially when we’ve made a good-faith contract offer for their provider practices that includes a rate increase. CommonSpirit hasn’t accepted that proposal, but we are still doing everything in our power to make sure our members can keep seeing their Memorial doctor. 

"If you’re a BlueCross member and see a CHI Memorial doctor (including those at the Chattanooga Heart Institute), we will: 

  • Process the claim based on your in-network benefits. That means you’ll get the lower copays, deductibles and out-of-pocket costs you would for seeing any other in-network doctor — instead of paying higher out-of-network costs. 
  • Pay the doctor based on the in-network rates in today’s contract, which are already competitive for the Chattanooga market. That’s also better for them, as reimbursements are lower for out-of-network providers. 

"It is possible that CommonSpirit could choose to balance bill members. But it wouldn’t be fair, and we hope they’ll do the right thing to protect doctor-patient relationships.

"CHI Memorial may no longer be part of Network S after June 30, but CHI Memorial still has an opportunity to be in Network P, as well as our Medicare Advantage and BlueCare networks, if they meet our members’ and customers’ needs for fair rates and contract conditions that support quality care.  

"While we’re excited to welcome Parkridge into Network S, we understand that this news may be disappointing for some people. We didn’t make this decision lightly, and we are certain we can support all our members through this transition.  

"It’s important to remember that this situation all started because of CommonSpirit’s actions: 

  • They insisted on putting an expiration date on our contract, and even tried to end it earlier. 
  • They started our discussions with a nearly $70 million rate increase. 
  • They wanted to leave our value-based care programs that support delivery of high-quality health services. 

"If you have ongoing services scheduled at a CHI Memorial facility, the care team from BlueCross will work with you to help make sure you continue to receive appropriate care from an in-network health care provider. And members in specific circumstances, like those getting cancer treatment or in the second trimester of pregnancy, can be granted in-network status to keep that care at a CHI Memorial facility for a period of time. 

"Our customer service and care teams are here to help make sure members don’t experience disruptions in care. Members with questions can reach out at the number on their member ID for support.  

"We owe it to everyone we serve to do what we can to slow the rising costs of care and coverage – and we are excited to move forward with a provider who is actively engaged in supporting that goal."  

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