NorthBay Healthcare and Blue Shield of California are poised to terminate their in-network agreement Dec. 1, reports The North Bay Business Journal.
NorthBay Healthcare officials said Blue Shield of California notified the health system in September it planned to terminate their contract effective Dec. 1.
In a statement to North Bay Business Journal, however, Blue Cross of California maintained negotiations with NorthBay Healthcare are ongoing.
"Not only has Blue Shield unilaterally decided to terminate our agreement, it also has refused to negotiate terms for new contacts," NorthBay Healthcare Vice President of Payer Contracts Elnora Cameron told NorthBay Business Journal. "Their termination notice demanded a 35 percent cut in their payment rate to our health system, which is insufficient for us to continue providing quality care."
In response, Blue Shield of California counters NorthBay Healthcare's medical costs are twice as high as its regional competitors.