BCBS, Texas Health Resources reach impasse in contract negotiations

Blue Cross Blue Shield of Texas will drop Arlington-based Texas Health Resources from its network Jan. 1, unless the two organizations reach a new contract by the end of the year, according to The Dallas Morning News.

The insurer said THR's demands for higher reimbursement rates have caused contract negotiations to break down.

"As one of the major insurance companies in the state, we have been tasked with trying to bring some sanity to the price structure," Paul Hain, MD, market president for Blue Cross in North Texas told The Dallas Morning News. "Negotiations are difficult when providers demand huge increases ... because the rates are already way too high."

Dr. Hain said THR has requested a $57 million increase to the existing contract. Texas Health Resources CEO Barclay Berdan told The Dallas Morning News that number "should be taken with a truckload of salt."

Mr. Berdan said the health system is dedicated to reaching an agreement with BCBS of Texas.

More articles on payer issues:

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Aetna says ACO plans saved $32M

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