Around 30 ASCs in southwestern Ohio have a tough decision to make: accept Humana's new reduced fee schedule or risk being booted from the giant health insurer's network.
Officials at Prexus Health Partners, which operates four area surgery centers and will soon open two others, says the new rates are so low they had no choice but to reject them. They say the Louisville, Ky.-based insurer is telling ASCs to take it or leave it.
Humana denies a published report that it gave the ASCs such an ultimatum. A spokesman for the insurer tells Outpatient Surgery Magazine, "We don't take that attitude with anyone that we contract with. We negotiate in good faith. We don't strongarm."
This all started in October, when Humana informed ASCs in Greater Cincinnati that it was going to pattern its fee schedule after Medicare's new ASC payment system effective Jan 1, 2008, switching from grouper-based reimbursement to a percentage of HOPD reimbursement. The adjustment would mean a decrease for some centers because Humana says it had been paying them more than Medicare did.
"We, of course, had no problems with a switch in methodology," says Donald J. Jansen, MHA, vice president of marketing and development for Prexus. "But when we ran Humana's proposed Jan. 1, 2008, rates and we found out that Humana was secretly using the Medicare payment methodology switch as an opportunity to reduce reimbursement to ASCs in 2008, we were greatly alarmed."
"We're not asking for more money," says Mr. Jansen. "Just make us whole."
The impact on Prexus translated to a double-digit drop in payment for 2008, which Prexus rejected. For example, Prexus says Humana's proposed 2008 payment schedule would reduce reimbursements to the Surgery Center of Evendale by 12.9 percent.
"Accepting such a significant decrease in reimbursement jeopardizes our facilities' ability to provide quality care, cover operating costs -- including our highly qualified clinical team -- and continue to invest in new technologies and state-of-the-art equipment," says Robyn Finnegan, vice president of managed care for Prexus.
Prexus claims that Humana has threatened to drop from its network any surgery center that doesn't accept its new fees, effective March 31. Humana denies that charge.
Dan O'Connor |