Blue Cross and Blue Shield of Minnesota and Mayo Clinic have come to terms on a new five-year contract that includes a pledge for "collaborative governance" to provide a better way for deciding when new health care technologies get coverage.
Contracts between insurers and hospitals usually make headlines only if the parties can't come to an agreement. But in the case of Blue Cross and Mayo, officials said the contract is noteworthy because of the aspiration for shared decisionmaking on emerging technologies plus a contract duration that spans more years than most agreements.
The contract also affects a large number of patients. Eagan-based Blue Cross, which is the state's largest health plan, said it spends more than $1 billion per year on health care at the Rochester-based clinic.
"It's a long-term contract," said Dennis Dahlen, the Mayo Clinic chief financial officer. "Since this is Mayo Clinic's largest business relationship, a five-year long-term arrangement is very helpful to our business planning."
Garrett Black, a senior vice president at Blue Cross, added: "Our vision for the partnership is that we're going to work together to bring innovative and value-based solutions to the market."
Last summer, Blue Cross and Children's Minnesota failed to agree on a new contract before an existing agreement expired. The rupture put into question how patients might access to the hospital, although a new contract ultimately was struck within a few days.
In late 2016, Medicare patients were worried by a contract dispute between Blue Cross and Minneapolis-based Fairview Health Services that ultimately was settled before the existing contract expired.
The new agreement between Blue Cross and Mayo Clinic takes effect in January. It means all Mayo Clinic locations statewide will remain in the Blue Cross network of doctors and hospitals through 2023.