Stanford University Medical Center, Cigna Agree to Contract
Stanford University Medical Center and Cigna have signed a new contract, ending a threat by the hospital to drop the insurer on Jan. 1 if no new contract was negotiated, the San Jose Mercury News reports. In May, Stanford threatened to drop all six of its HMOs unless new contracts could be negotiated. The medical center is attempting to free itself from capitated contracts that "don't cover the true cost of providing health care," the Mercury News reports. Under the new contract, Cigna will pay a prearranged fee for each medical procedure, rather than the per-member, per-month capitated payment system. The contract affects approximately 3,000 people covered by Cigna. Stanford is continuing to negotiate with other HMOs -- HealthNet, Blue Cross, Blue Shield, Aetna and PacifiCare -- which "collectively represen[t] about 46,700 Stanford patients" (San Jose Mercury News, 8/21).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.