Mississippi Mayors: HMA, Blue Cross Dispute Could Hurt Economy

Mayors of cities in Rankin County, Miss., have expressed concern the spat between Naples, Fla.-based Health Management Associates and Blue Cross & Blue Shield of Mississippi could lead to hospital closings and leave residents without jobs, according to a report from The Clarion-Ledger.

Earlier this year, BCBS sent a termination notice to Health Management informing the company it intended to ax its contracts with 10 of the hospital operator's Mississippi facilities after they all sued the insurer, claiming the payer has been underpaying them by millions for certain inpatient procedures. BCBS recently offered to reinstate four of the hospitals, but Health Management has reportedly rejected the proposal on the grounds that the terms are unacceptable. BCBS has not discussed the terms and conditions of its offer.

Mayor Gary Rhoads of Flowood, Miss., told The Clarion-Ledger his city relies on the medical industry surrounding River Oaks and Woman's hospitals. Brandon, Miss., Mayor Butch Lee similarly said the conflict between the health insurer and hospital operator has created uncertainty surrounding Crossgates River Oaks Hospital in his city.

BCBS told The Clarion-Ledger Health Management alone will determine the future of the hospitals and their employees.

Last week, Mississippi Association of Health Plans CEO Jeffrey Drozda told the Mississippi Business Journal other insurers would be happy to step in if BCBS decides to end its contracts permanently with Health Management's hospitals. Association members UnitedHealthcare and Cigna have declined to comment on what they would do if BCBS ultimately drops the hospitals.

More Articles on Mississippi Hospitals:
HMA, Blue Cross Dispute in Mississippi Could Create Opportunity for Other Insurers
HMA Rejects Blue Cross Offer to Reinstate 4 Mississippi Hospitals
Mississippi Lawmakers Might Intervene in Blue Cross, HMA Dispute