Thursday, November 12, 2009

Southwest Ohio Network Alert: Medical Mutual Edition

Once again, Premier Health (and its associated hospital network, including Miami Valley) is on the outs with a major carrier. This time, Medical Mutual of Ohio has declined to renew its contract with Premier, effective January 1st of next year (about 7 weeks away). This could mean a potentially huge disruption of service: in addition to over 100 local doc's, the network includes Miami Valley and Good Samaritan Hospitals, and a home health care agency.

This isn't the first time that the network has clashed with insurers: about this time last year, Humana and Premier parted ways, and have yet to reconcile. And a few years before that, Anthem and Premier separated for quite some time before they kissed and made up.

My guess, based on the timing, is that MMO is looking to pressure Premier into concessions on price; this isn't a bad tactic, per se, and could result in some savings for their insureds. This far out, it gives both sides time to posture, and still come to an agreement before the clock runs out.

We'll keep you posted.
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