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June 7, 2010

FCHP Scores Well In Hospital Survey

When it comes to the image of health plans, Massachusetts hospitals say Worcester-based Fallon Community Health Plan is number one.

That’s according to a new survey commissioned by the Massachusetts Hospital Association. Asked about the image and reputation of various plans, hospitals in the state gave FHCP a 76 percent favorable and 20 percent unfavorable rating.

Harvard Pilgrim came in second, at 70 percent favorable and 23 percent unfavorable. (Click here to see the survey results.)

“We are pleased to be thought of so highly when it comes to image and reputation,” FCHP President and CEO Patrick Hughes said in an e-mail message. “As we continue to tackle the difficult issue of rising health care costs, the survey results can help us work better together to create an even more efficient health care system.”

Market Share

Still, Fallon remains a bit player in the state’s health care economics. Eighty-seven percent of Massachusetts hospitals said they negotiate contracts with the plan, but it was not the largest payer for any hospital, and it was the second-largest for just 7 percent of respondents.

Karen Granoff, senior director of managed care policy for MHA, said FCHP’s reputation rating may actually have benefited from its small size. Even respondents who have little contact with the plan might see it as a small, local organization that’s likely to be accessible.

“The impression is that they are easier to deal with,” Granoff said.

On the other end of the size spectrum, the survey showed Blue Cross Blue Shield of Massachusetts is by far the most significant player in the market. Ninety-three percent of the state’s hospitals say it’s their biggest payer. Granoff said BCBS insures two-thirds of Massachusetts residents.

In contrast, in a nationwide version of the survey, only 52 percent of respondents named an independent Blue Cross organization as their biggest payer.

Hospitals gave BCBS mediocre ratings on image and reputation: 54 percent positive and 46 percent negative. Respondents praised its repayment rates for hospitals and physicians and its promptness in paying, but they gave it low marks for denying claims and for honesty and candor.

In its analysis of the survey, MHA said that despite their concerns about Blue Cross, hospitals don’t expect much change. They don’t prioritize increasing rates from the insurer, the organization said, because they don’t think it’s possible.

“That just speaks to their market share,” Granoff said. “It’s always harder when you’re a hospital in that position to go up against them.”

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