Chesapeake Regional Healthcare Negotiates Contract with Anthem

CHESAPEAKE, Va. – Chesapeake Regional Healthcare recently announced that the local, independent health system is negotiating the organization’s contract with insurance company Anthem. Following ongoing financial challenges stemming from inflation and the pandemic aftermath, the nonprofit system is seeking fair terms to protect the hospital's sustainability and preserve access to the doctors and care teams its patients know and trust.

“We are proud to be a local, independent hospital, and caring for our community is our priority - this guides every decision we make and everything we do,” said Reese Jackson, President and CEO of Chesapeake Regional Healthcare. “In 2023, staffing costs alone increased by 13%. Hospitals everywhere are facing unprecedented financial challenges, but community hospitals like ours are experiencing this most intensely. In the face of rising costs, we need our insurance partners to pay us fairly for the care we provide so that we can continue to serve our community. We also need our community to know we are dedicated to advocating for our Anthem patients so that they can keep the doctors they depend on in their network.”

Anthem is currently paying Chesapeake Regional 25% below market value. This means Chesapeake Regional is receiving payments that are 25% less than Anthem pays other hospitals in Hampton Roads-- for the same services. Payments from Anthem do not sufficiently cover the rising costs of providing patient care at Chesapeake Regional Healthcare.

In recent years, the hospital has invested over $150 million in a new Critical Care Tower, the Priority Toyota Cancer Center, modernizing its mother-baby unit (having delivered over 100,000 babies since 1986), an open heart program, a trauma program, developing a comprehensive behavioral health program, and opening its campus to a 200,000 sq. ft. outpatient facility for Veterans. About these programmatic investments, Mr. Jackson further stated, “Anthem members and the community at large will benefit now and well into the future as a result of our recent improvements. While Anthem and other insurers have an obligation to their publicly traded shareholders, it is also in their best interest to ensure that Chesapeake Regional remains financially stable. We offer the most competitive pricing in the region and our financial needs are modest in comparison to other area hospitals.”

During the negotiation, patients with Anthem insurance coverage should continue to access their Chesapeake Regional doctors and all locations and services as usual. If Chesapeake Regional and Anthem are unable to reach a resolution by June 30, 2024, the hospital system will be considered an out-of-network provider for patients with Anthem health insurance.

Community members can learn more at https://chesapeakeregional.com/AnthemFAQs.