Northside Hospital and Anthem contract battle goes to court

Contract extended until Feb. 1 due to public health emergency
The Atlanta-based Northside Hospital health system was granted an injunction in Fulton County Superior Court that averted a Jan. 1 termination of its contract with insurance giant Anthem Blue Cross Blue Shield.

The Atlanta-based Northside Hospital health system was granted an injunction in Fulton County Superior Court that averted a Jan. 1 termination of its contract with insurance giant Anthem Blue Cross Blue Shield.

Late last week, Northside Hospital announced a temporary reprieve in its contract battle with insurance giant Anthem Blue Cross Blue Shield. The Atlanta-based health system said it had been granted an injunction in Fulton County Superior Court that averted a Jan. 1 termination of the contract.

Northside cited a new Georgia law (House Bill 454), which includes a provision saying that during a public health emergency, an insurer is prohibited from ending such a contract.

So, at least for the moment, hundreds of thousands of Georgia patients with Anthem insurance will remain in network if they go to Northside providers.

Northside said it would continue its discussions with Anthem. “With the Covid-19 Omicron variant now surging through U.S. and Georgia, Anthem’s decision to remove Northside from its networks defied both logic and sensitivity,” Northside said in a statement.

Anthem, meanwhile, said in a statement that the court order extends the current Northside pact only until Feb. 1.

“Continuing the current contract will not achieve the affordability or quality improvements we have been seeking from Northside, which is why we will not stop our good-faith negotiation efforts until we reach an agreement that is in the best interests of consumers,’’ said Anthem spokeswoman Christina Gaines.

State Rep. Mark Newton, an Augusta physician who was the lead sponsor of HB 454, said Monday that “this current contract dispute illustrates precisely the need for our recent bill protecting patients.”

Newton, a Republican, added that the Legislature “has worked to be sure individual patients are not crushed’' in such contract battles.

“Georgia families can continue to receive their health care from trusted doctors and hospitals at affordable, in-network rates.”

Northside was not among the six metro Atlanta systems that recently reported a large increase in COVID-19 hospitalizations. Still, Katherine Watson, a spokeswoman, said Monday that Northside has seen a 221% increase in patients in the last two weeks alone.

The numbers are still increasing, she added.

Andy Miller is editor of Georgia Health News.