Preserving Quality Health Care in Hanover

Hanover Hospital has committed itself to this community to being the provider of choice. To keep this promise to the community the organization has developed several strategic initiatives including assessing and negotiating its managed care contracts. Over the past several months, we have evaluated and renegotiated our contracts with Aetna, Highmark, HealthAmerica and United. We have done this to ensure fair reimbursement for the services we provide and consistent reimbursement from all of the companies for the same services.

It is unfortunate that Hanover Hospital has not been able to reach the same agreement with Capital BlueCross. Capital BlueCross has not been willing to renegotiate their contract to a fair and equitable level.

Hanover Hospital has expressed the following concerns:

  • Capital BlueCross pays the hospital far less, for the same services, than all the other major insurance companies such as Aetna, Highmark, HealthAmerica and United.
  • Each of those other companies is able to sell their health insurance products in this market, pay Hanover Hospital a fair rate and make a fair profit. Capital BlueCross could do the same, but has chosen not to.
  • Even by paying us at the same level as the other major insurance companies, we are, by far, less expensive than our competitors in York and Gettysburg for the very same services.
As a result of this impasse, Hanover Hospital will be terminating its contract with Capital BlueCross effective July 1, 2012. “We are taking these steps to protect the long term financial health of Hanover Hospital and to insure our ability to serve the community and to reinvest in our employees, our programs and services.” said George Kyriacou, President and CEO of Hanover Hospital.

What does this mean for our patients?
Hanover Hospital will continue to accept Capital BlueCross as a provider from individuals and businesses in the community. We are providing this information to the community now so that all individuals and businesses who have Capital BlueCross as their insurance provider have ample notification and be able to plan for insurance coverage in 2012. Again, Hanover Hospital’s contract with Capital BlueCross is effective until July 1, 2012.

“If Capital BlueCross were willing to agree to a phased improvement in their reimbursement to parity with all other payers, we would be happy to withdraw our termination notice.” Kyriacou said. “We would look forward to this resolution.”

The current contract wth Capital BlueCross and Hanover Hospital is effective until July 1, 2012.

For questions and more information, please contact Lisa M. Duffy, Director of Marketing at (717) 646-6906 or (717) 633-2141.