Contract Dispute May Affect Patients Of Noted Children's Hospital

On behalf of The Law Office of Lynnette Ariathurai, A Professional Corporation posted in Contract Disputes on Friday, July 7, 2017.

When California business people encounter obstacles in their contracts, it often affects more than those directly involved. When medical care is at issue, as is the case in a current contract dispute between Blue Cross and Blue Shield and a well-known children's hospital in another state, patients themselves may suffer if problems remain unresolved. In this situation, the hospital's patients may have to go elsewhere for health care.

A contract between Blue Cross and Blue Shield and the children's hospital system is about to expire. A central focus of their ongoing contract dispute has to do with a request Blue Cross and Blue Shield made for a 31 percent payment cut for children at the hospital insured by Medicaid. The hospital said it would suffer long-term financial problems if such requests are met.

The Children's Hospitals and Clinics of Minnesota explained that agreeing to the proposed terms would threaten its future. In the meantime, patients may have to go to other facilities for care if the contract problem is not resolved.  The hospital system reportedly launched a website that some suggest is meant to pressure Blue Cross and Blue Shield into withdrawing its request.

Those representing the hospital say that what is needed is a fair contract that protects children's best interests in health care, especially those who rely on Medicaid. Blue Cross and Blue Shield has stated that its requests are reasonable and that the hospital health system should agree to accept inpatient service payments comparable to other providers in the area. When a California business party staunchly opposes a proposed contract, it often takes a savvy business and commercial law attorney to help negotiate a fair and agreeable outcome. 

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