Hospital Is Still Talking With Cigna to Keep Pact

The president of St. Joseph Hospital has sent a letter to all 2,400 hospital employees, affirming that his facility is still negotiating to remain Cigna Healthplans’ primary medical provider in Orange County, despite Cigna’s signing of a contract with Western Medical Center.

A Cigna spokesman had said Monday that Western Medical Center’s hospitals in Anaheim and Santa Ana had been signed to replace St. Joseph of Orange as Cigna’s primary medical provider in the county.

But the next day, Cigna spokesman Del Bowman declined to describe Western Medical as the major provider, saying only that his company had signed a “non-exclusive contract” with the hospital facility. Bowman also said that a non-exclusive contract with St. Joseph was to continue until the current three-year contract expires in June. A non-exclusive contract means that Cigna can use other hospitals.

Talks Continuing

Bowman said that negotiations for renewal of St. Joseph’s contract “reached an impasse” last month but that “St. Joseph appears willing to reopen discussions at this time.” Previously scheduled negotiations between Cigna and St. Joseph continued Wednesday.

Both Bowman and Walter W. Noce, St. Joseph’s president, declined to reveal the nature of the talks.

Bowman reaffirmed Wednesday that St. Joseph would continue to be used under a new independent health-care plan offered by Cigna which allows members to use pre-approved doctors, some of whom have staff privileges at St. Joseph.

At stake for St. Joseph in the contract renewal, Noce said, is about $10 million worth of business with Cigna, taking care of about 2,000 Cigna patients per year.

Talking in ‘Good Faith’

Noce said he immediately contacted Cigna officials after reading Bowman’s comments this week that St. Joseph had been dropped as Cigna’s primary medical provider, effective in June. He said Cigna Vice President Jerry Chrysler assured him that that was not true.

“They (Cigna) said they are still negotiating in good faith to keep the business at St. Joseph,” Noce said.

Chrysler referred requests for comment to Bowman.

Bowman said the contract signed with Western Medical Center last month comes up for renewal in one year. He would not say Wednesday how much business Western Medical would be getting, although on Monday he said it would be the majority of Cigna’s hospital care in Orange County.

Wayne D. Schroeder, president of Western Medical Center, said his company’s contract is for Cigna’s pediatric care, as well as overflow adult patients from other county hospitals. Schroeder declined to reveal financial details of the contract. He noted that Cigna approached Western Medical Center about the deal.

“When people approach us, we’re going to respond,” Schroeder said.

The signing of the Western Medical contract infuriated several dozen Cigna members who work for county government. They have sent in petitions threatening to withdraw from Cigna if it drops St. Joseph at the end of its contract. The employees said they were concerned, primarily because they had not been notified of the change.