Condell takes heat on Blue Cross impasse
With less than a week left on the contract between Blue Cross Blue Shield and Condell Medical Center, hospital officials met with Lake County employers Thursday to discuss the future.
The Libertyville-based hospital ended up taking a lot of heat from angry employers, many of whom accused the hospital of being evasive and too greedy in their negotiations with the insurance company.
"This is like a messy divorce, and we're the kids in the middle getting hurt," said Alan Hahn, financial director for Hawthorn School District 73. "There are three parts to this: yours, Blue Cross Blue Shield's and the truth somewhere in the middle. We've all negotiated before, and both sides can make this happen. I charge you to make this happen."
Dennis Millirons, Condell president and CEO, said he understands everyone's frustration but doesn't see an agreement being reached any time soon.
"I ask you to tell Blue Cross to make it fair and we'll sign a contract with them today," Millirons said. "We would love to be in the Blue Cross network, but we have to be paid fairly."
Condell and Blue Cross Blue Shield have been in contract negotiations for the past year. Both sides allege they are owed millions of dollars from each other.
Condell has asked Blue Cross Blue Shield for a 30 percent to 37 percent increase in reimbursements, which has been denied three times by the insurance provider.
"Our Blue Cross contracts are losing contracts," said Andrew Stefo, senior vice president and CFO of Condell. "If you look at what we're paid versus other hospitals, a 30 percent increase is on the low end of the scale."
Beginning Nov. 1, Condell will be considered out of network for Blue Cross Blue Shield patients.
The change affects Blue Cross PPO patients and about 11,000 Blue Cross HMO patients. The number of PPO members cannot be quantified, but Condell officials estimate it is tens of thousands.
Stephanie Smith-Howard, an insurance broker with Design Insurance Brokers Inc. in Mundelein, said the repercussions of this are much larger than people think.
"There are individual and group policies," she said. Groups can move; people who are on their own with pre-existing conditions can't change providers."
About two dozen Lake County employers attended Thursday's forum held at the Vernon Hills village hall. Representatives from Blue Cross Blue Shield were not in attendance and could not be reached for comment.
Vernon Hills officials said they are hoping to have a similar meeting soon with Blue Cross Blue Shield.
Elaine Johnson, assistant human resources director for Lake County, said Condell's request for a 30 percent to 37 percent increase means the employer will have to pay the difference.
"We've had great success with Blue Cross in the past, but now we've got to reassess the situation," Johnson said, adding that of the county's 2,800 employees, about 25 percent use Condell. "Condell is very prominent in Lake County. We would like to keep them. I just hope they can reach a negotiation."