Contract dispute ends as Blue Shield, Simi Valley hospital come to terms

Blue Shield of California members are again eligible for coverage at Adventist Health Simi Valley hospital in the wake of a contract agreement announced Friday.

The previous agreement terminated on Dec. 1 after the two sides failed in negotiations involving reimbursement rates. Blue Shield sent its members a letter saying they were no longer covered in many situations at 18 Adventist Health hospitals across California.

Terms were not announced but Blue Shield officials said its members have in-network access at the hospitals in a deal that is retroactive to the beginning of the month when the previous pact expired.

During the dispute, Blue Shield leaders said they were working to negotiate a deal that would keep costs affordable for its members. Adventist Health leaders said they needed higher reimbursement because of medical costs driven up by inflation, the COVID pandemic and a “strenuous regulatory climate.”

Both sides said they were glad an agreement was reached.

“Adventist Health has been a part of Blue Shield’s network for providers for a long time, and I look forward to continued collaboration with the hospital system,” said Aliza Arjoyan, Blue Shield’s senior vice president of Provider Partnerships and Network Management.

Tom Kisken covers health care and other news for the Ventura County Star. Reach him at tom.kisken@vcstar.com or 805-437-0255.

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This article originally appeared on Ventura County Star: Blue Shield, Adventist Health end contract dispute