Dive Brief:
- Aetna and Boston Children's Hospital (BCH) are haggling over a new contract while the current contract's February 15 deadline is fast approaching.
- The dispute revolves around BCH negotiating an increase in reimbursement rates for physicians employed by Children's and Women's Physicians of Westchester NY (CWPW) - a 276-member physician group the hospital acquired in May 2015.
- Aetna said the rate increase was "significant" although BCH said it is only asking for an increase that amounts to less than 2%.
Dive Insight:
Aetna sent 1,800 members letters stating BCH may soon be out of network. If negotiations fall flat, and a new contract isn't signed, members won't lose access to their doctors, thanks to a pre-existing contract Aetna has with the CWPW group.
Aetna spokesman Walt Cherniak said both sides are still negotiating, but BCH has notified Aetna it plans to allow the contract for the hospital to expire.