| Though both sides are hopeful an agreement can | | | | dispute on reimbursement amounts. The |
| be negotiated, Somerset Medical Center has | | | | termination was canceled after the hospital and |
| notified Cigna HealthCare of New Jersey that it will | | | | insurance company successfully negotiated a new |
| terminate its contract with the managed-care | | | | contract. |
| provider effective Jan. 4, 2010 If an | | | | Bateman said the reimbursement rates offered |
| agreement is not reached, customers of Cigna still | | | | by Cigna do not offset the increased costs for |
| will be covered at Somerset Medical Center under | | | | the medical center to provide charity care for the |
| their plan's "out-of-network" provisions, said | | | | growing number of uninsured patients. Bateman |
| Kenneth Bateman, president and chief executive | | | | also noted the decline in government funding at |
| office of the medical center. | | | | both the state and federal levels. |
| Cigna policy holders represent about 3-4 percent | | | | About half of the hospital's patients are covered |
| of the hospital's patients, Bateman said. | | | | by government plans such as Medicare, Bateman |
| "We are still actively in negotiations with Cigna and | | | | explained. |
| remain hopeful that we will reach an agreement | | | | "And you don't negotiate with the government," |
| before our current contract expires on Jan. 4," | | | | he said, adding that the government is "ratcheting |
| Bateman added. "We understand the impact | | | | down" its reimbursements. |
| terminating this contract would have on Cigna | | | | More and more hospitals will find themselves in |
| patients and we are committed to ensuring their | | | | dispute with insurance companies over |
| continuity of care." | | | | reimbursements, Bateman predicted. |
| "We continue to negotiate with Somerset Medical | | | | Emergency medical care will not be affected by |
| Center and are hopeful that we can reach a | | | | the termination of the Cigna contract. Those |
| mutually agreeable contract that will keep them in | | | | services should be covered by Cigna in |
| the network," said Gwyn Dilday, a public relations | | | | accordance with federal and state laws, with |
| representative for Cigna. | | | | patients paying their standard emergency |
| In 2006, Somerset Medical Center announced it | | | | department co-pay. |
| was terminating its contract with Aetna over a | | | | |