TL/DR –
Chesapeake Regional Healthcare is struggling to maintain financial stability due to increasing labor, drug and supply costs. It is seeking to rectify this situation by negotiating with for-profit insurance companies, particularly Anthem, to pay more for the services the hospital provides. Chesapeake Regional points out that it is being paid 25% less than other hospitals for the same services, despite having similar costs, arguing that insurance companies need to take responsibility to ensure that non-profit hospitals can continue to serve their communities.
Chesapeake Regional Healthcare’s Financial Struggles and Insurance Disparity
For much of its existence, Chesapeake Regional Healthcare has maintained firm financial footing. However, economic inflation and rising costs of labor, drugs, and supplies have exerted significant pressure on the hospital’s resources. Like many community hospitals across the United States, Chesapeake Regional is now grappling with financial challenges, pondering how to continue serving the local health needs of its community.
Among the key factors contributing to these challenges is the relationship with for-profit insurance companies. Chesapeake Regional, like many hospitals nationwide, is pushing for these companies to pay their fair share. A current example of this struggle is Chesapeake Regional’s ongoing negotiations with Anthem.
It’s crucial to understand that insurance companies, driven by profits, aim to pay each hospital as little as possible. For instance, despite recording almost $6 billion in profit last year, Anthem, also known as Elevance Health, pays Chesapeake Regional 25% less for identical services than other nearby hospitals.
Anthem often cites the size of a hospital as a reason for paying less. However, regardless of a hospital’s size, the costs for staffing, supplies, and drugs are virtually the same. Despite being a standalone hospital serving fewer patients than larger systems, Chesapeake Regional argues that it should not be paid less for the same services. The hospital claims to provide care on par, if not superior, to other hospitals in the area and therefore deserves similar compensation.
In conclusion, Chesapeake Regional insists that it is doing its part to provide care to the community. However, given the escalating cost of patient care, insurance companies need to step up and ensure that nonprofit hospitals can continue serving their communities effectively.
—
Read More Health & Wellness News ; US News