CHI Memorial has been focused on providing the highest quality of health care in Chattanooga for generations. As the only faith-based health care system in Chattanooga, CHI Memorial puts patient care and community service before profits. With the most extensive primary care network in the region, CHI Memorial brings care close to home. CHI Memorial has also invested in excellent cardiovascular care, partnering with the Chattanooga Heart Institute and its 30 physicians and surgeons, providing some of the best cardiac care in the country. We care about our community and our patients, and we don’t want to lose a single one to the whims of insurance companies, like BlueCross BlueShield of Tennessee (BCBST).
We are nearing the end of a three-year contract with BCBST, and for several months, we have been working in good faith to come to an agreement on a new, fair contract before our current contract expires on Tuesday, June 30. Our goal is to reach an agreement that will preserve your access to the high quality care you depend on and deserve.
Inflation has hit all of us since COVID-19. Just like the cost of groceries has risen, the cost of providing care at CHI Memorial has gone up too. Overall, escalating costs of supplies, salaries and surgical equipment has contributed to a 30% increase in the cost of providing health care in the last three years. Meanwhile during this same time period, BCBST’s cash reserves have skyrocketed. They are now sitting on $4.1 billion of cash reserves which increased due to lower utilization during the pandemic. We believe that BCBST can easily use a small portion of these reserves to provide fair rates to CHI Memorial without raising premiums for employers and patients.
We always negotiate with our mission in mind, and we know our communities are counting on us. We proposed reasonable rates that would allow us to pay our caregivers fairly, keep our facilities maintained and keep pace with inflation. BCBST’s reimbursement has not kept up with inflation, and we are simply asking them to pay their fair share of rising health care costs, as other insurance company partners have already agreed to do.
Amid all these challenges, our top priority is still our patients, which is why we are committed to continuing negotiations as one integrated health system with BCBST in good faith to reach a new contract agreement. It’s important for our community to know that we remain in network with BCBST today, and it is our hope to remain that way. We have every reason to believe we’ll reach a fair agreement before June 30.
We’re asking BCBST to come to the table with a genuine desire to partner with us and help us provide the best care for patients. When we work together toward shared goals, we can make a meaningful impact on the lives of those we serve.
If you have health insurance through BCBST, you can make your wishes known by calling the number on the back of your insurance card and letting them know you want to keep CHI Memorial in your network. We want the same thing, and we will not stop working toward a solution that puts our community first.
William P. Warren is managing partner of the Chattanooga Heart Institute, CHI Memorial.