Memorial Hermann, Cigna to end contract

Houston-based Memorial Hermann Health System may no longer be in network with Cigna come March, according to the Houston Business Journal.

A contract between the organizations is scheduled to end March 16, and the organizations are currently feuding over list prices and value-based projects.

In a statement to the Houston Business Journal, Cigna claimed earlier this year "Memorial Hermann unilaterally raised the list price of its services," then "refused to engage in meaningful negotiations with Cigna that would bring rates for Cigna customers in line with what the hospital system charges other customers."

Memorial Hermann painted a different picture of the dispute, saying Cigna didn't accept Memorial Hermann's offer to create a value-based reimbursement program.

"Unfortunately, Cigna has been unwilling to meaningfully engage with Memorial Hermann in the creation of value-based programs as an effort to collectively lower costs for patients across our service area," a Memorial Hermann spokesperson told the Houston Business Journal.

The contract dispute does not affect Medicare Advantage policyholders, but it could affect 178,000 other members and 1,460 affiliated physicians, according to the Houston Chronicle.

More articles on healthcare finance:
North Carolina hospital misses payroll
Pennsylvania medical center closes
CMS to repay hospitals millions for off-campus clinic visits

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