‘Rebel’ Silicon Valley Women’s Health Group Signs Only One Managed Care Contract
The Silicon Valley Women's Health Medical Group, an OB-GYN physician group that "rebelled against managed care" by seeking MCO contracts at higher reimbursement levels, has agreed to "just one managed care contract" since it formed in February, leaving some patients with other health plans to pay cash for services and others to delay annual checkups, the Silicon Valley/San Jose Business Journal reports. The group formed after a number of smaller OB/GYN groups became "frustrated" with declining managed care reimbursement rates. Currently, only San Jose-based Lifeguard has signed a contract with the group. Cigna Healthcare of California walked away from negotiations with the group after failing to agree on reimbursement rates, the Business Journal reports. Cigna spokesperson Jim Harris said, "The rates they were asking for were not competitive with the market." Dr. Mary Imig of Silicon Valley Women's Health said, "This has been scary for all of us. We want to take care of our patients, but we can't do it on what we're being paid because it's so expensive to do business here." She added, "We have really been surprised how many patients are going ahead and paying up front." Imig said that the group expects patient volume to decrease between 5% and 10% over the next several months (May, Silicon Valley/San Jose Business Journal, 6/11).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.