CNY’s biggest primary health care provider signs new contract with Excellus

Syracuse, NY — Central New York’s largest primary care provider and its largest commercial insurer have signed a new contract that will preserve coverage for 30,000 patients.
FamilyCare Medical Group will remain in-network with Excellus BlueCross BlueShield, both sides announced Thursday morning. The deal means there will be no impact on coverage for Excellus members in the new year.
FamilyCare’s CEO Dr. Mitchell Brodey had signaled a breakthrough in negotiations a month ago after sounding the public alarm over the summer.
Excellus had always maintained that negotiations take time and expressed hope that their differences would be resolved before the Jan. 1 deadline.
Both sides signaled that they were ready to work together moving forward.
“While contract negotiations are a standard part of our business and very typical for this time of year, it is never lost on us how important it is for our members that we reach an agreement and keep the doctors and hospitals they trust in our network,” said Excellus’s CEO and president Jim Reed in a statement Thursday morning.
Brodey also signaled his approval of the contract.
“This agreement reflects our unwavering commitment to advocating for (patient) needs and ensuring they continue to receive the exceptional care they deserve,” Brodey said in the joint statement.
One of the main points of contention for months, both sides said, was a complicated arrangement over the handling of Excellus’s Medicare Advantage clients.
Excellus pays FamilyCare a lump sum to take care of its Medicare Advantage patients. The medical practice then takes on the costs of patient care as they arise.
The amount of that lump sum was a major sticking point.
Excellus also recently reached terms with WellNow Urgent Care after more than 10 months without a contract.
It remains in negotiations with St. Joseph’s Health, which has acknowledged that it is demanding steep rate hikes to offset a structural operating deficit.
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