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Network: CHOMPS Terminates from Aetna Network

Jan 07, 2011

Aetna News Release

Community Hospital of the Monterey Peninsula: Contract with Aetna Expired on December 31, 2010

In early November 2010, we notified you that we were negotiating with Community Hospital of the Monterey Peninsula (CHOMP) to reach an agreement on a new contract.

Unfortunately we were unable to reach an agreement with Community Hospital of the Monterey Peninsula (CHOMP) and have terminated our contract with them as of December 31, 2010.

We understand our clients and our Aetna health plan participants want access to a robust, high quality network of hospitals, doctors and other health care providers. Additionally, Aetna is concerned about containing rising health care costs - which comes back to the contracts we negotiate with those providers.

We successfully negotiate thousands of contracts each year with physicians and hospitals that do a great job of providing high-quality, low-cost services. However, we cannot accept cost increases that are not competitive.

When this happens, we often face difficult situations in your local communities. Community Hospital of the Monterey Peninsula (CHOMP) terminated from the Aetna network on December 31, 2010. Aetna members may be concerned that they will need to change doctors or go to a different hospital for care.

Aetna began working with CHOMP in January, 2010 to reach agreement on new contracts. The current contract expired on December 31, 2010. CHOMP remained unwilling to enter in to an agreement with Aetna that would reduce the hospital's reimbursement to below 100% of billed charges.

It is Aetna's objective to negotiate a contract that is not only competitive, but also reasonable to our customers, members and the hospital. CHOMP’s unwillingness to reduce their high cost of care comes at a time when both the nation and state are focusing on reducing costs as one of the key components of health care reform.

Aetna must help contain skyrocketing health care costs, which partly depends on affordable network contracts. Aetna members and customers depend on Aetna to negotiate contracts with reasonable and realistic rate increases. CHOMP is currently more expensive than other hospitals in Northern California. Residents and employers in the Monterey area would continue to pay on average the highest costs in Northern California if we had accepted an agreement with CHOMP that was at 100% of billed charges.

Alternative hospitals in the Aetna network
While we would prefer to have had CHOMP and it's physicians in our local Aetna network, and acknowledge that it is a valuable and respected health care provider in the community, we have an adequate network of hospitals and physicians in the area that can meet our members’ health care needs.

Aetna will continue to provide access to nearby, in-network hospitals.

Hospital location:
Community Hospital of the Monterey Peninsula
23625 Holman Highway
Monterey, CA  93940

Alternative nearby hospitals:
Salinas Valley Memorial Hospital
450 E. Romie Lane
Salinas, CA 93901

Natividad Medical Center
1441 Constitution Blvd.
Salinas, CA 93906

Alternative nearby skilled nursing facilities:
Monterey Pines Skilled Nursing Facility
1501 Skyline Drive
Monterey, CA 93940

Pacific Coast Care Center

720 E. Romie Lane
Salinas, CA 93901

Alternative nearby chemical dependency facilities
Beacon House
468 Pine Avenue
Pacific Grove, CA 93950

Sun Street
11 Peach Drive
Salinas, CA 93901

Alternative home health services:
Central Coast VNA and Hospice

Heartland Home Health Care Network

Please contact your Aetna Representative if you have any questions, or if you need any additional information. We appreciate your support and we will continue to keep you informed of any changes in our local network.

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