A battle between Blue Shield of California and Sacramento, Calif.-based Sutter Health has prevented the two from entering into a new contract, according to a Los Angeles Times report.
The previous contract ended on Dec. 31.
Blue Shield claims the nonprofit 24-hospital system's prices are up to 30 percent higher than other hospitals. However, Sutter contends its charges per hospital discharge are in line with or lower than its peers, based on state data, the report reads.
About 280,000 health plan members have been notified they could lose network coverage with Sutter physicians and hospitals, according to the report.
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