Blue Cross of California & Catholic HealthcareWest Reach Agreement on Multi-Year Contract;...

Business Editors & Health Writers

SAN FRANCISCO & THOUSAND OAKS, Calif.--(BW HealthWire)--Aug. 15, 2000

Blue Cross of California (BCC) and San Francisco-based Catholic Healthcare West (CHW) announced they have reached a multi-year agreement to continue to provide quality

It was previously announced that the contract with 40 CHW facilities throughout the state and three CHW-affiliated medical groups in the Sacramento and Santa Cruz areas would expire at midnight, August 14, 2000 if CHW and BCC were unable to reach agreement in contract negotiations. The medical groups that would have been affected are the MedClinic of Sacramento, Woodland Medical Clinic in Woodland, and Western Medical Associates in Santa Cruz.

"Both parties labored long and hard to work this out. Negotiations continued right up to our termination date, but on behalf of our members, we are pleased that the CHW hospitals will remain in the Blue Cross network of over 400 facilities," said Ron Williams, president of BCC. "We've made a commitment to our members to provide a broad choice of quality hospitals so they may continue to have convenient access to affordable, quality care."

"For all of us at CHW, one truth always holds -- our job is to provide caring, high quality and affordable health care services. It is our mission and top priority. That's why we're here," said Lloyd Dean, CHW's president and CEO. "We are pleased that we will be able to continue our long working relationship with Blue Cross and look forward to meeting our patients' expectations for quality, compassionate care."

Negotiations between CHW and BCC began in March and were extended in July to allow additional time to conclude talks on contract language and reimbursement rates for covered medical services. The new contract covers 40 CHW hospitals and three of CHW's seven medical groups.

Blue Cross of California, with 5.4 million medical members, is the California operating subsidiary of WellPoint Health Networks Inc., one of the nation's largest publicly traded managed care companies. WellPoint serves the health care needs of more than 7.6 million medical and approximately 34 million specialty members nationally. WellPoint offers a broad spectrum of quality network-based health products including open access PPO, POS and hybrid products, HMO and specialty products. Specialty products include pharmacy benefit management, dental, utilization management, vision, mental health, life and disability insurance, long term care insurance, flexible spending accounts, COBRA administration, and Medicare supplements.

Catholic Healthcare West is the largest Catholic health care system based in the Western United states with 48 hospitals and seven medical practice groups in California, Arizona and Nevada. CHW is sponsored by nine religious orders and works to further the healing ministry of Jesus by delivering compassionate, high-quality, affordable health services; providing direct services to the poor and disenfranchised, and advocating on their behalf; and partnering with others to improve the quality of life in the communities we serve. CHW annually cares for more than 300,000 patients; provides more than $300 million in community benefits and care for the poor; and employs approximately 40,000 people.

40 CATHOLIC HEALTHCARE WEST HOSPITALS INVOLVED IN
BLUE CROSS OF CALIFORNIA NEGOTIATIONS

Sacramento Region:
Mercy General Hospital, Sacramento
Mercy Hospital of Folsom, Folsom
Mercy San Juan Hospital, Carmichael
Methodist Hospital of Sacramento, Sacramento
Sierra Nevada Memorial Hospital, Grass Valley
Woodland Memorial Hospital, Woodland

San Joaquin Region:
St. Joseph's Medical Center, Stockton
St. Joseph's Behavioral Health Center, Stockton
Mercy Hospital and Health Services, Merced
St. Dominic's Hospital, Manteca
Mark Twain St. Joseph's Hospital, San Andreas
Oak Valley District Hospital, Oakdale

Bay Area Region:
St. Mary's Medical Center, San Francisco
Seton Medical Center, Daly City
Seton Medical Center Coastside, Moss Beach
O'Connor Hospital, San Jose
St. Louise Regional Hospital, Gilroy
Saint Francis Memorial Hospital, San Francisco
Sequoia Hospital, Redwood City

Monterey Bay Area Region:
Dominican Hospital, Santa Cruz

Central California Area Region:
Bakersfield Memorial Hospital, Bakersfield
Mercy Hospital, Bakersfield
Mercy Southwest Hospital, Bakersfield
Mercy Westside Hospital, Taft

Central Coast Area Region:
Marian Medical Center, Santa Maria
St. Francis Medical Center, Santa Barbara
St. John's Pleasant Valley Hospital, Camarillo
St. John's Regional Medical Center, Oxnard

Southern California Area Region:
Robert F. Kennedy Medical Center, Hawthorne
St. Bernadine Medical Center, San Bernardino
St. Francis Medical Center, Lynwood
St. Mary Medical Center, Long Beach
St. Vincent Medical Center, Los Angeles
Community Hospital of San Bernardino
California Hospital Medical Center, Los Angeles
Glendale Memorial Hospital & Health Center
Long Beach Community Medical Center
Northridge Hospital Medical Center
Northridge Hospital Medical Center-Sherman Way
San Gabriel Valley Medical Center