Methodist CEO responds after contracts expire with BCBST | Opinion

Michael Ugwueke
·3 min read
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In a Dec.12 opinion piece titled The Coverage You Trust and the Quality You Deserve From Methodist, I shared three things that Blue Cross Blue Shield of Tennessee failed to acknowledge in its own opinion piece despite the insurer's late notice to Methodist Le Bonheur Healthcare demanding a rate decrease and BCBST's intention to terminate our contract if we failed to reduce rates by 40 percent. We believe this 40 percent cut is not justified by any facts because the only reason given was to allow BCBST to be competitive in the market.

The timing of Blue Cross' notice and their unreasonable negotiation tactics would lead one to believe that their intention all along is to disrupt the physician-patient relationship and the ability of patients to access advanced care unmatched in the region.

That’s why we are deeply disappointed that we were unable to reach a resolution with BCBST before contracts expired on Dec. 31.

More:Methodist Le Bonheur now out of network for Blue Cross TN patients

For the last three months, we have negotiated in earnest to come to a balanced and fair resolution with BCBST to ensure our patients continued to have access to our full continuum of care and facilities, including offering deep discounts and an extension of current contracts with BCBST to avoid disruption for those who depend on Methodist Le Bonheur Healthcare for their care.

Now, BCBST has informed its members that they are out-of-network if they choose Methodist facilities, including our Le Bonheur Children’s Hospital, and will face higher costs for selecting the care they’ve come to trust and depend on. To help alleviate the burden on our patients during this transition, Methodist Le Bonheur Healthcare does not intend to cancel any 2023 procedures at any of our facilities for BCBST patients who had already scheduled before Dec. 31, 2022.

We are still committed to working with BCBST in hopes of reaching a resolution soon. Meanwhile, I would still encourage members to reach out to your human resources department and tell them that you want to remain in the Methodist Le Bonheur network by switching to CIGNA, United Healthcare or other payers that pass their savings to you.

More:With deadline approaching, where do Methodist, Blue Cross negotiations stand?

We sincerely empathize with our patients that have found themselves in this predicament because of BCBST’s inability to put patients’ needs over profits. To make matters worse, recent letters from BCBST sent to several groups of its members are very confusing, which may have been intentional on their part. For example:

  • In a letter to federal government employees, BCBST promised to continue to pay benefits at the preferred level until Feb. 13. Yet, in the same letter, BCBST stated Methodist Le Bonheur Healthcare and providers could no longer submit billing claims, meaning these patients would have to pay out of their own pockets for services upfront.

  • In another letter, BCBST stated that while our Le Bonheur Children’s Hospital is no longer in-network, St. Jude Children’s Research Hospital patients who are treated at Le Bonheur, Methodist Le Bonheur Germantown’s pediatric unit or a pediatric facility would be billed at the in-network rate. Later, in that same letter, BCBST stated patients could avoid paying more out of pocket expenses by going to facilities that are in-network.

  • In yet another letter, BCBST instructed members who are receiving ongoing care at one of four Methodist Le Bonheur facilities can simply ask BCBST to keep covering their care.

BCBST’s recent efforts do not solve any problem or get us any closer to a resolution for those who matter most – our patients.

We are hopeful that BCBST will return to the table for balanced and fair negotiations that are mutually beneficial to all parties and ensure that patients are not lost in the shuffle. Let’s get this resolved.

Michael Ugwueke is president and chief executive officer of Methodist Le Bonheur Healthcare.

This article originally appeared on Memphis Commercial Appeal: Methodist CEO responds after contracts expire with BCBST