Mercy ends contracts with Anthem BCBS in Missouri

On September 10, 2024, Mercy announced its decision to terminate contracts with Anthem Blue Cross Blue Shield in Missouri after extensive negotiations. The organization aims to prioritize patient care and reduce administrative burdens that hinder timely access to necessary medical services. Mercy's senior vice president, Dave Thompson, expressed concerns over Anthem's reimbursement rates, which have not kept pace with rising healthcare costs due to inflation, placing financial strain on healthcare providers. Mercy has consistently provided care at lower costs compared to state averages, with inpatient stays 27% below the average and outpatient care 16% below. The nonprofit health system also reported over half a billion dollars in free care in the last fiscal year. Despite these efforts, the disparity between Anthem's premium increases and reimbursement rates has led to this significant decision. Mercy will continue to be in-network with Anthem until December 31, 2024, allowing patients to receive care without immediate disruption. However, if a new agreement is not reached, Mercy will transition to out-of-network status starting January 1, 2025. The organization is committed to negotiating in good faith to avoid impacting patients, especially those requiring ongoing care. Thompson encouraged patients to voice their concerns to Anthem, emphasizing the need for managed care companies to support healthcare providers in delivering effective and affordable care. Mercy operates numerous facilities across multiple states, serving a vast patient population and striving to maintain high-quality healthcare access.