Blue Shield of California finalized a three-year contract with Stanford Hospital and Clinics this past week for health maintenance organization (HMO) and preferred provider organization (PPO) rates. Negotiations concluded Thursday to meet a deadline just after midnight on Friday morning, according to the San Jose Mercury News.
Had the two sides not reached a deal in time, Blue Shield members would have seen their insurance coverage affected at Stanford Hospital and Clinics (SHC).
In a statement, Randy Livingston, Stanford vice president for business affairs and chief financial officer, said, “We’re very pleased that [Stanford] and Blue Shield were able to complete a new agreement in the nick of time, averting potential confusion and disruption for Stanford employees and postdocs with Blue Shield coverage who receive services from Stanford Hospitals and Clinics.”
Terms of the deal were not released. Patients from other insurance providers are unaffected by the negotiations.