Otto says insurance rift has no quick fix

By CHARLES W. JOHNSON / News Editor for the Southern Standard

OTTO

Blue Cross Blue Shield of Tennessee and HCA, parent corporation of River Park Hospital, are still at odds on any kind of agreement that would put the local heath care provider back in the Blue Cross network, according to comments made by River Park CEO Steve Otto during his talk at the Noon Exchange Club this week.

In fact, Otto said all talks have effectively ceased and have no prospect of resuming in the near future. The two major health care corporations continue to have no communications after a mediation session failed earlier this year.

Otto, who attended the Noon Exchange Club meeting to present his views on the rising costs of health care, prefaced his remarks by noting right up front he wanted to address any concerns the community might have with respect to the continuing impasse.

“I’d like to get through the presentation quickly and certainly open it up for any questions you might have about River Park and our relationship with Blue Cross and what I think is going to happen over the next 12 months, because obviously it’s important and it’s on everyone’s mind,” Otto said.

Otto acknowledged the situation with Blue Cross was problematic for River Park – with no resolution in sight.

“I can briefly tell you that there’s not going to be a contract with Blue Cross before the year’s out,” he said. “I feel very confident in that. We’ve been working very diligently and even though we’d like that to happen, I just don’t see it happening.”

Otto said the hospital is trying to come up with alternatives for local residents, but currently the only really effective one is to switch insurance carriers.

“We are working with other insurance companies to get them to come into our town and really get more competitive on prices and offerings. In the meantime, we’re going to continue writing off out-of-network penalties for Blue Cross enrollees through the end of the year.”

But past the end of the year, the outlook is a little less clear.

“As far as next year and beyond, I really can’t make that guarantee,” Otto said.

But even with all the problems the contract dispute has caused, Otto said he felt the eventual outcome would have at least some beneficial effect.

“I’m really encouraged that, as painful as this has been, this is going to force health care costs to be lowered in Warren County.”