Hospital, Blue Cross Extend Pair of Contracts Short-Term Move Allows for Longer Negotiations

By KAREN MAESHIRO\ Staff Writer

LANCASTER — Antelope Valley Hospital and Blue Cross of California have agreed to extend two contracts by three months until the end of April while they continue to negotiate a new pact.

The Blue Cross Medi-Cal contract and its commercial contract, which includes health-maintenance organizations and preferred- provider organizations, were set to both expire this month.

“It’s just the pretty typical process you go through when you are trying to negotiate higher rates when costs have increased,” hospital CEO Les Wong said. “They are trying to keep costs down. It’s one of those tug-of-wars.”

Blue Cross officials did not respond to requests for comment.

With its Medi-Cal contract about to expire Jan. 18, Blue Cross had notified members that they might need to switch to a new hospital. But then the hospital and Blue Cross agreed to extend the contract.

“So right now everything is just as it was. You can still come to Antelope Valley Hospital,” said Brad Mucek, hospital chief financial officer.

The number of Blue Cross subscribers who live in the Antelope Valley was not known. About 10 percent of Antelope Valley Hospital’s patients in 2001 were Blue Cross subscribers.

In terms of hospital volume, Blue Cross members account for about 11,000 inpatient days, Mucek said.

Hospital officials expect the contracts will be renewed and said patients should not become alarmed. In the unlikely event, however, that no agreement is reached, Blue Cross subscribers have other coverage options.

“In the unlikely event that the contract is not renewed — we don’t anticipate that — there are other insurance providers that people can select that will allow them to have access to Antelope Valley Hospital,” Mucek said. “But we don’t think we are going to get there.”

Antelope Valley Hospital is a 411-bed hospital.

karen.maeshiro@dailynews.com

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