Anthem Blue Cross and Methodist Hospital Agree to New Deal

Anthem Blue Cross and announced Wednesday that they had reached an agreement allowing Anthem members to receive in-network health care services at the Arcadia hospital.

“We are pleased to have Methodist Hospital be part of our extensive provider network in California. This new agreement represents very good news for our members who choose to receive health care services from these providers,” said Anthem Blue Cross President Pam Kehaly in a joint statement released by the two companies. “Once again, members can receive covered services at Methodist Hospital and take advantage of their plans’ in-network benefits."

The two sides had been without an agreement since the previous contract was terminated in 2008. Since then, negotiations remained in a stalemate as Methodist alleged Anthem had refused to pay tens of millions of dollars in patient benefits for out-of-network care provided by the local Huntington Avenue hospital. Things went so sour that Methodist eventually filed a lawsuit against Anthem to recover out-of-network payments.

But despite the tough talk, the sides continued to work together to come to an agreement. Wednesday it finally happened.

“We are most pleased to have achieved this important agreement as we prepare to open our new patient tower this fall,” said Methodist Hospital’s President and CEO Dennis Lee in the released statement. “We are very happy to welcome Anthem Blue Cross members, who now have access to all of Methodist Hospital’s exceptional services.”

Terms of the agreement--which became effective June 15, 2011--were not disclosed.