California hospital ends Anthem contract after alleged contract breaches

Redding, Calif.-based Shasta Regional Medical Center is cutting its contract with Anthem short because of alleged contract violations, the provider said. 

In an email to the Record Searchlight, Casey Fatch, Shasta Regional Medical Center CEO, accused Anthem of "repeated breaches" of their contract after months of conflict resolution attempts. 

Anthem and Shasta Regional Medical Center inked a multiyear contract this year, but the medical center revisited the agreement and sought higher rates, Anthem officials told the Record Searchlight

"[It is] unfortunate that Prime Healthcare (Shasta Regional Medical Center's parent company) has chosen to abandon its contract with Anthem Blue Cross and turned its back on its members we serve that have used their facilities," Anthem said in a statement to the Record Searchlight

While the contract is terminated, Anthem members can receive emergency services and continued care, and Mr. Fatch said the provider is open to negotiating on scheduling elective procedures. 

This is the second contract dispute Anthem has had with a Northern California provider. It butted heads with San Francisco-based Dignity Health in July before resolving the dispute in August.

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