Community Update: EJGH Continues Contract Renegotiations with Blue Cross Blue Shield

At EJGH, we have been focused on creating a solid financial foundation for the hospital and ensuring our long-term survival.  In Louisiana, we have some of the best hospitals and doctors in the country, yet access to these resources can be difficult for many people. EJGH is working hard to make sure that everyone in our community can access care when they need it – a critical part to a healthy community and, ultimately, a healthier state. This is not always easy and there will be challenges along the way, but we are committed to making healthcare accessible to all in the communities we serve.

Today, we find ourselves faced with a challenge of renegotiating our contract with Blue Cross Blue Shield of Louisiana that has become more urgent, and we want to make you aware of the situation. We presented Blue Cross with a termination letter on August 4, 2010, when our initial discussions did not lead to a mutually satisfactory conclusion. The contract is set to expire on October 3 of this year, yet we remain hopeful both sides can come to an agreement.

We’re not asking Blue Cross to solve this problem for us. Yet, we are asking for payment rates comparable to what Blue Cross pays other hospitals, and comparable to what we receive from other payors.

The discussions between East Jefferson and Blue Cross have been cordial and professional, and we are confident Blue Cross will continue to value East Jefferson as a provider to its members and agree to appropriate terms. We must fix this now – our community deserves a choice and our patients shouldn’t be forced to switch hospitals or pay higher out of network charges.

During the last five years, EJGH has experienced an influx of low-paying and non-paying patients. This is due in part to the circumstances created by Katrina, and also from the growing number of people who are either uninsured or covered by government programs. In fact, at EJGH we treat a high number of Medicare patients and for every patient we treat under the Medicare program, we get paid only 85 cents for every dollar we spend providing care. This has taken its toll on our organization over the years, resulting in a loss of more than $160 million since Katrina’s devastation to our region in 2005.

We will continue to share additional information as negotiations progress.  In the coming weeks, we will also share some information about East Jefferson General Hospital’s financial situation, our plans to survive and thrive in the future, and the unfolding contract situation with Blue Cross.  Beyond the immediate negotiations, we know that our contracts with private insurance companies are a key part of our ability to create a solid financial foundation for our hospital. Over the next several months, we will be negotiating contracts with other major payors to include fair payments. These contracts will make the difference in our long-term survival.

We take our responsibility to our community and our patients very seriously and you can be assured that we will work hard to get through these negotiations with Blue Cross without any disruption in care for our community. This is our commitment to you.

We will keep you updated as our negotiations with Blue Cross progress.  In the meantime, please don’t hesitate to contact us with any questions or if you’d like to discuss the issue further. We can be reached by contacting Keith Darcey at (504) 913-4377 or by email at This e-mail address is being protected from spambots. You need JavaScript enabled to view it . You can also visit this page at www.ejgh.org/healthcoverage for more information.

Thank you for your continued support for East Jefferson General Hospital.

Sincerely,
Mark J. Peters, M.D.
President and CEO