C-TH and state benefits board sign HMO contract

Carson City residents insured by the state's Public Employee Benefits Program will be able to continue to get care and services from Carson-Tahoe Hospital.

The hospital and Hometown Health Plan announced Thursday they have successfully negotiated a health-care contract, ending a standoff that threatened to force state workers and their families to go to Reno for health services.

The benefits program insisted the hospital contract through Hometown Health for the agreement. In the past, the plan has contracted directly with the hospital.

Benefits plan Executive Director Woody Thorne said the new agreement is retroactive to July 1 so there will be no break in coverage for state workers and their families.

He said the new contract will save the state plan about $3 million a year compared with the old contract.

Hospital Chief Operating Officer Kevin Stansbury said after Hometown Health reviewed the hospital's figures on the average stay and cost by state plan members in the past, the two sides were able to work out an agreement.

"Basically, we wound up agreeing to the same numbers we proposed June 30," he said. "We were able to negotiate a rate that we felt was going to take care of us along with some other provisions."

Stansbury said the hospital had to agree to provide the same discounts to Hometown Health's other customers as it will provide to the state plan members. Originally, hospital managers including Chief Executive Officer Ed Epperson had said it would cost the hospital too much revenue.

"We have assurances from HHP that, if in fact it isn't working, they will re-evaluate it in a year," Stansbury said.

Thorne said for the 10,000 to 12,000 plan members living in the Carson City area, the new three-year contract means they can continue going to their local hospital for care.

"C-TH will continue as a preferred provider," he said.

Carson-Tahoe Hospital is currently building a new regional medical center in North Carson City. The 350,000-square-foot facility will offer enhanced and expanded services, including services not now offered including open-heart surgery.

Carson-Tahoe Hospital has also recently expanded outpatient services in Dayton and Minden.

Contact Geoff Dornan at gdornan@nevadaappeal.com or 687-8750.