Insurance Provider Severs Ties with Two Local Hospitals
Photo: Video by kmir6.com
A major health insurance provider terminated their agreement with six Southern California hospitals, including two right here in the desert.
Health Net severed ties with six Tenet Healthcare hospitals.
That includes John F. Kennedy Memorial Hospital in Indio, and Desert Regional Medical Center in Palm Springs.
Many people will either have to change which hospital they go to, or change their health insurance provider.
When you are hurt, sick or just going in for a check-up, there are three medical center's to pick from in the valley.
But now, if you are insured by Health Net, there is just one.
Health Net said Tenet's reimbursement should be in line with the medical consumer price index, which averages more than three percent.
Steve Sell, president of Health Net's Western Region Health Plan said "Our goal is to help preserve affordable benefits for our customers, not pass along inflated health care costs."
But a spokesperson for Tenet Healthcare Corp -- representing Desert Regional and JFK Memorial -- said they had a full agreement with health net on reimbursement rates.
"At the time of our last meeting, we were in full agreement on the terms of our contract. It is unclear to us as to why Health Net issued a contract termination and publicly released inaccurate information," said Tenet spokesperson, Rebecca Ayer.
On Facebook, we asked viewers if they are Health Net subscribers.
Stacey said, "Wow! I am so glad that we just changed to Blue Shield as of January 1st. We always go to Desert Regional for some serious health issues in my family."
KMIR6 viewer Brenda said, "We have Health Net. Looks like my husband's company will be switching real quick!!!"
Health Net told us they are asking doctors in the valley to have their Health Net patients cared for at Eisenhower Medical Center.
So now many people here in the valley will face the choice: change their hospital, or change their insurance.
Health Net and Tenet's contract ended December 21st, but Health Net announced Thursday that negotiations for a new contract were ended.