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Northern Light Health and Anthem may go to mediation to resolve contract dispute

orange tinted aerial of building facade and flag FILE PHOTO / COURTESY NORTHERN LIGHT HEALTH Northern Light Health and Anthem have each reached out to the other about starting mediation to reach a contract agreement.
By Laurie Schreiber

After ending contract negotiations with Anthem Blue Cross Blue Shield two weeks ago, Northern Light Health said the two parties may sit down with a third-party mediator to resolve differences. 

The effort could help resolve the impasse between the two parties, according to a news release.

“We cannot predict whether mediation will be successful should Anthem agree to this process, but it is the right thing to do as we continue to prioritize the best possible outcome for our patients,” said James Rohrbaugh, Northern Light’s executive vice president and CFO. “We hope that Anthem will agree to mediation.”

On Aug. 22, Anthem reached out to Northern Light regarding bringing in a mediator to help reach a contract agreement, according to a separate statement.

“We are pleased that Northern Light agrees with Anthem about taking this next step in our negotiations,” Anthem said.

If the two organizations are unable to agree to terms, Northern Light will be out of network with Anthem for physicians and ancillary services effective Oct. 1. Effective Dec. 31, the health care system will be out of network with Anthem hospital-based services.

In previous statements, Northern Light said that factors contributing to ending negotiations included what Northern Light said were delays in claims processing and a high volume of denials, a cumbersome prior authorization process, redundant and non-standardized forms and unclear communications.

And Anthem said it remain committed to working with Northern Light to reach a new contract.

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