In the world of transparency building today...how can anyone keep things of this sort from being published or discussed...and the threat of not getting patients sent to their offices or to the hospitals? BD
The state stepped into a bitter battle Thursday between Blue Cross of California and the doctors, hospitals and medical labs that serve about 700,000 people covered by the state's largest health plan. At issue is the contentious financial relationship between medical providers and Blue Cross, which the state's top HMO regulator warned might worsen the plight of California's struggling hospitals.
The dispute began this year when Blue Cross sought to require hospitals, physicians and labs to sign a confidentiality agreement that would prevent them from publicly discussing fee negotiations. But the providers balked, saying it prevented them from using lawyers and other outside consultants to represent them in fee negotiations, a routine practice.
On Thursday, the Department of Managed Health Care issued a cease-and-desist order forbidding Blue Cross to continue its efforts. Because Blue Cross is the largest insurer in the state, the loss of its patients would put a financial strain on many hospitals, particularly stand-alone and rural hospitals.
He said UCLA's contract with Blue Cross for its area Medi-Cal patients expired in April and was not renewed because the university refused to negotiate under the terms demanded. "For some of these physicians, particularly if they are small offices, they don't have the ability to negotiate with the most powerful insurance company in the state," he said.
Agency orders Blue Cross to halt practice - Los Angeles Times
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