Call on BlueCross to Stop Putting Profits Ahead of Patients

1. For Immediate Release June 21, 2018
Contact: Damian Becker, Manager of Media Relations
(516) 377-5370
DRAFT2 – Not for Release – Not Approved
Empire BlueCross Members Call on Insurance
Giant to Put Patients Ahead of Profits
Oceanside, NY – Patients, members of Empire BlueCross, elected officials and union leaders today
called on Empire BlueCross to stop putting profits over patients so tens of thousands of local residents can
continue to access medical services at South Nassau Communities Hospital.
Empire BlueCross has refused to provide South Nassau with a fair reimbursement rate – similar to what
it pays other Nassau County hospitals for the same services – so its nurses and physicians can continue to
provide quality care to some 900,000 residents in its service area on the South Shore.
If the health insurance conglomerate does not change its position in contract talks with South Nassau, ,
Empire BlueCross members, including thousands of current and retired government employees, will not be able to
access non-emergency care at South Nassau as of July 1st
.
“We are asking for parity with what Empire BlueCross pays other hospitals. In some instances,
BlueCross is paying nearby hospitals as much as 40 percent more for the same procedure,” said Richard J.
Murphy, president and CEO of South Nassau. “A fair reimbursement rate from BlueCross will allow South
Nassau to properly compensate our nursing, physician and support staff so they can continue to provide the kind
of quality care our patients expect.”
Following months of fruitless negotiations, South Nassau’s contract with BlueCross expired May 1, 2018.
At the end of a 60 day cooling off period, South Nassau will be ‘out of network’ with Empire BlueCross unless a
new agreement is reached starting July 1.
If an agreement is not reached on or before July 1, people insured by Empire BCBS and who rely on
South Nassau for healthcare services could face higher out-of-pocket costs for non-emergency services. By
law, emergency room visits and any admissions resulting from an ER visit will still be considered.
Exceptions are made for people who require emergency medical care or are established patients who
need continuation of care for an ongoing illness. “We know it will be difficult for our patients if Empire BCBS
chooses to profits over patients, however, we will do whatever we can to help them manage the impact of the
disruption,” Mr. Murphy assured.
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2. Last year, Anthem, Inc., which owns Empire Blue Cross/Blue Shield, reported $3.4 billion in profit, a 55
percent increase in profitability over 2016. Additionally, under the Trump tax reform package passed last year,
Anthem/Blue Cross received a $1 billion credit in corporate tax relief, reducing the tax they paid to $121 million at a
corporate tax rate of 3.1 percent – far below the tax rate imposed on most Long Island households.
While padding their corporate bottom line, Empire Blue Cross has been shortchanging South Nassau for
years over the amount of money it reimburses the hospital for services being provided to patients who are
covered by Blue Cross. Other hospitals in Nassau County receive as much as 40% more than South Nassau to
treat the same medical conditions. South Nassau seeks parity with the amount of reimbursement Blue Cross
currently provides to other hospitals in Nassau County.
“For-profit health insurance giants, like Anthem Blue Cross, are earning record profits while non-profit
hospitals across the country are struggling to keep their doors open. It’s time we held them accountable! South
Nassau is our community hospital with a commitment to meet the healthcare needs of the over 900,000
residents that it serves, including many of my constituents. I fully support them in their fight and urge Blue
Cross to give South Nassau a fair reimbursement rate,” said Nassau County Legislator Denise Ford.
“In the interest of my constituents, many who are hard-working members of the Town of Hempstead
CSEA 880, I urge the leadership of Empire Blue Cross Blue Shield to end the impasse and provide South
Nassau a fair reimbursement rate to ensure that the residents of the South Shore experience no disruption in
accessing the quality healthcare services that they deserve and need,” adds Town of Hempstead Councilman
Anthony D’Esposito.
South Nassau is encouraging Empire BCBS members and all residents to contact Gov. Andrew
Cuomo’s Deputy Secretary for Health & Human Services (at: paul.francis@exec.ny.gov) to request expressed
support of a fair reimbursement rate for South Nassau as well as Anthem, Inc.’s Chair of Board of Directors,
Elizabeth E. Tallett (boardofdirectors@anthem.com) to let her know that it is not good business to put profits
ahead of people.
Designated a Magnet® hospital by the American Nurses Credentialing Center (ANCC) for outstanding
nursing care, South Nassau® Communities Hospital is one of the region’s largest hospitals, with 455 beds, more
than 900 physicians and 3,500 employees. Located in Oceanside, NY, the hospital is an acute-care, not-for-
profit teaching hospital that provides state-of-the-art care in cardiac, oncologic, orthopedic, bariatric, pain
management, mental health and emergency services.
In addition to its extensive outpatient specialty centers, South Nassau provides emergency and elective
angioplasty, and offers Novalis Tx™ and Gamma Knife® radiosurgery technologies. South Nassau operates
the only Trauma Center on the South Shore of Nassau County verified by the American College of Surgeons as
well as Long Island’s only free-standing, 9-1-1 receiving Emergency Department in Long Beach.

3. South Nassau is the only hospital on Long Island in 2018 to achieve Healthgrades America’s 100 Best
Hospitals for Orthopedic Surgery™, Orthopedic Surgery Excellence Award™ and 5-star rating for Total Hip
Replacement, and it was one of just two hospitals on Long Island to achieve Healthgrades 5-stars in Hip
Fracture Treatment.
South Nassau also is a designated Stroke Center by the New York State Department of Health and
Comprehensive Community Cancer Center by the American College of Surgeons, and is an accredited center of
the Metabolic and Bariatric Surgery Association and Quality Improvement Program.
In addition, the hospital has been awarded the Joint Commission’s gold seal of approval for disease-
specific care for hip and knee replacement, heart failure, bariatric surgery, wound care and end-stage renal
disease. For more information, visit www.southnassau.org.
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