Health services vendor Healthways has agreed to pay $9.4 million to Blue Cross Blue Shield of Minnesota to resolve a contract dispute regarding telehealth services.
In 2001, BCBSMN and Healthways entered into a contract under which Healthways would provide disease management services via telehealth to BCBSMN members. In 2008, BCBSMN ended the contract with Healthways in favor of offering the services itself.
In 2010, BCBSMN alleged Healthways had gone against the terms of the contract and requested the company be reimbursed for services rendered under the contract that had already been paid, according to a report in The Tennessean.
The two companies briefly worked with an arbitrator, but ultimately opted to resolve the dispute themselves, according to the report. To pay the settlement, Healthways will take a $9.4 million charge against its first-quarter earnings.
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