September 8, 2009

Dear San Gabriel Valley Community Member:

As you are aware the contract between Methodist Hospital and Anthem Blue Cross terminated in January 2008. A series of unfair bargaining tactics by Anthem Blue Cross resulted in a failed negotiation that never addressed the hospital’s issues. Because of this many individuals and employer groups are now considering health insurance choices. This letter is intended to update you on developments in our termination with Anthem Blue Cross of California.

Contract Negotiation

It appears that Anthem Blue Cross is following through with its threat to lock Methodist Hospital out of its network. Despite repeated efforts by hospital representatives and me, the parties have not made any real progress in negotiations since the contract terminated. Contrary to assurances made by Anthem Blue Cross executives, the plan’s inaction makes clear that this contract negotiation is not a priority. There is no justification for this callous disregard of patient needs in the San Gabriel Valley. Anthem Blue Cross remains at significant risk of additional provider network disruptions with twenty-five hospital terminations currently pending, an increase of nearly 50% from last year. In the past year, other hospitals, including Pomona Valley Hospital Medical Center and Tarzana Regional Medical Center, have terminated their contracts with Anthem Blue Cross.

Patient Access to Care

Emergency hospital care with no out-of-network penalties is available to all Blue Cross members. Additionally, both HMO enrollees and many PPO enrollees, depending on their insurance coverage, have been able to access non-emergent care at Methodist Hospital with no out-of-network penalties when other hospitals could not meet their needs. Unfortunately for many Blue Cross enrollees, including individual plan members and those plan members whose employers are based in other states, access is not provided by Anthem Blue Cross. Methodist Hospital has responded to this unequal patient access by often discounting patient liability resulting from out-of-network nonemergent care received at our facility.

Methodist Hospital is concerned about the impact that this contract termination continues to have upon you and your family. I encourage you to consider alternatives if you are insured through Blue Cross and to discuss your concerns about access to care with your employer. You will find ongoing updates and additional information at the Methodist Hospital website www.methodisthospital.org.

If you have any questions or concerns about access to care at Methodist Hospital please call (626)574-3733.

Sincerely,

Dennis M. Lee
President and CEO