The stakes cannot be higher for Boston’s Tufts Medical Center.
Over the past few weeks, we’ve been reading how rival Partners HealthCare, comprised of powerhouse hospitals Massachusetts General and Brigham and Women’s Hospitals, have bullied health insurers into disproportionally higher payments.
I have argued it is because patients demand their services.
Now, Tufts Medical Center is attempting to play the same game, announcing they are no longer accepting the state’s largest insurer, Blue Cross Blue Shield HMO.
As always, patients will determine whether this gambit is successful. If they continue to demand Tufts care, they will switch insurers, forcing Blue Cross’ hand. If not, then the hospital will lose and acquiesce to the lower payments. It’s as simple as that, and this is the beginning of a public relations war that will be decided by advertising dollars.
Does Tufts have the cachet of a MGH or Brigham? My gut says no, since they don’t have the name appeal of the Partners brand.
{ 3 comments… read them below or add one }
Agree w Kevin.
I’ll be shocked if BCBS gives Tufts anything significant.
I’m always getting these glossy announcements in the mail from Tufts asking me to refer them patients. I don’t think they’re bargaining from a position of strength.
Maybe try referring a patient to Tufts Medical Center and see what type of feedback you get from the patient and patient’s family. I bet you will be very pleased with the quality of care, patient outcomes as well as superb communication between referring physician and Tufts Medical Specialist.
Kevin,
This isn’t about brand stature; this has always been about negotiating strength based on buying power. Partners has the leverage, Tufts doesn’t.
Blue Cross Blue Shield of Massachusetts has not problem richly compensating its own executives, it just doesn’t like fairly compensating physicians at inner city hospitals unless they have the clout of a major healthcare system. One of the major factors driving hospitals to form systems has been the improved negotiating position it gives them when dealing with insurance companies.
Tufts Medical Center is being treated unfairly and under-compensated simply because Blue Cross Blue Shield of Massachusetts can get away with it.
I’m betting on Tufts prevailing in this situation because of the power of public opinion!