Health Net Terminates Six SoCal Tenet Hospital Contracts (SF Valley Business Journal)

December 27, 2012 – Health Net Inc. announced that its subsidiaries have terminated agreements with all six of Tenet Healthcare Corp.’s Southern California hospitals after the two companies failed to renegotiate reimbursement rates. The Woodland Hills insurer said it thinks Tenet’s reimbursement should be in line with the medical consumer price index, which currently averages more than 3 percent and that reimbursement for government programs like Medi-Cal need to be consistent with that inflation rate. “Our goal is to help preserve affordable benefits for our customers, not pass along inflated health care costs,” said Steve Sell, president of Health Net’s Western Region Health Plan, in a statement.

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