BLUE CROSS: Reaches Agreement With Sutter On Reimbursements
Blue Cross of California and Sutter Health have signed a three-year contract agreement "under which Blue Cross customers can receive care at Sacramento-based Sutter's 23 acute-care hospitals and long-term care centers in California," the Bloomberg News/Los Angeles Times reports. A month ago, Sutter canceled its contract with Blue Cross' parent company, Wellpoint Health Networks Inc., alleging that "it was not being reimbursed enough to cover its costs." In what analysts are calling a "positive development" for the company, Wellpoint's shares got a 5% boost upon news of the deal yesterday, closing at $65 on the NYSE, up $3.13 from the previous day (6/9). For past California Healthline coverage of the Blue Cross-Sutter contract fallout, click here.This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.