{"id":74985,"date":"2020-02-26T03:51:56","date_gmt":"2020-02-26T03:51:56","guid":{"rendered":"https:\/\/dh.durangoherald.com\/tj\/mercys-withdrawal-casts-health-alliance-in-doubt\/"},"modified":"2026-03-31T11:25:18","modified_gmt":"2026-03-31T11:25:18","slug":"mercys-withdrawal-casts-health-alliance-in-doubt","status":"publish","type":"post","link":"https:\/\/dh.durangoherald.com\/tj\/mercys-withdrawal-casts-health-alliance-in-doubt\/","title":{"rendered":"Mercy\u2019s withdrawal casts health alliance in doubt"},"content":{"rendered":"\n

\"About
About 20 people gathered in front of Mercy Regional Medical Center on Tuesday to demonstrate against Centura Health, the parent company of Mercy Regional Medical Center, backing out of negotiations with the Southwest Health Alliance, a cooperative working to lower health care costs in the region.<\/span>Jerry McBride\/Durango Herald<\/span><\/figcaption><\/figure>\n<\/p>

Durango-area residents demonstrated outside the front doors of Mercy Regional Medical Center on Tuesday as the CEO of Centura Health, Mercy\u2019s parent company, met with hospital executives, physicians and the hospital\u2019s board of directors in a series of meetings.<\/p>\n

The demonstration of about 20 people came after Centura Health announced last week a plan to lower hospital costs by an average of 20%, leading members of Southwest Health Alliance to write an open letter accusing Centura of leaving the negotiating table<\/a> and effectively undercutting the alliance\u2019s efforts to develop an insurance plan to lower health care costs in the region.<\/p>\n

\u201cThey\u2019ll do whatever they can to weed out any health care option that isn\u2019t in the Centura system,\u201d said Mary Oswald, a member of Southwest Health Alliance\u2019s steering committee, at Tuesday\u2019s demonstration. Oswald added that Centura was attempting \u201cto squeeze out the community.\u201d<\/p>\n

Centura\u2019s announcement of its plan to lower hospital costs came as other health care providers in the region put rate proposals together to meet Southwest Health Alliance\u2019s March deadline for filing to insurance companies.<\/p>\n

Southwest Health System, operator of Cortez\u2019s Southwest Memorial Hospital, first began talking with the health care alliance in early January, said Tony Sudduth, Southwest Health System\u2019s CEO.<\/p>\n

After a couple of meetings, including a community forum organized Feb. 11<\/a>, he said the hospital submitted its proposal to participate in the alliance last week. But with Centura introducing its own rate-saving initiative for Mercy, some worry the future of the Southwest Health Alliance is in jeopardy.<\/p>\n

\u201cThey have to have Mercy in the network,\u201d Sudduth said. \u201cI think it will end the initiative if they can\u2019t get Mercy back to the table.\u201d<\/p>\n

\"The
The Southwest Health Alliance has been leading an effort to create a local health care purchasing cooperative. But those efforts hit a major hurdle last week when Centura Health, parent company of Mercy Regional Medical Center, reportedly stepped back from negotiations with the alliance.<\/span>Jerry McBride\/Durango Herald<\/span><\/figcaption><\/figure>\n<\/p>

Like Southwest Health Alliance, Sudduth said he had no warning Centura would be introducing its own plan to lower hospital costs outside the health care cooperative.<\/p>\n

\u201cOur proposal stands if (Southwest Health Alliance) decides to move forward with it,\u201d he said. Otherwise, Sudduth said Southwest Memorial Hospital will work to pursue its own cost-reduction plan, similar to Mercy.<\/p>\n

In a Montezuma County commissioners meeting Tuesday evening, Sudduth said Southwest Health System was working with the Western Health Alliance in Grand Junction to begin creating a health plan that could be localized to Montezuma County.<\/p>\n

Monique DiGiorgio, executive director of the Local First Foundation, the nonprofit leading efforts to create the health care purchasing cooperative, called on community members to meet outside the doors of Mercy at 4:30 p.m. Tuesday to express their displeasure. The Southwest Health Alliance blasted Centura in a news release issued Friday, with the title: \u201cCentura backs out of community health care plan.\u201d<\/p>\n

\u201cUsing the compelling story of the Sisters of Mercy to communicate their decision to disengage from our local health care plan is an affront to our community and the Sisters themselves,\u201d said Ted Wright, chairman of the Local First Foundation board, in the release. \u201cWe are asking that Centura come back to the seat we prepared at the community table through the Southwest Health Alliance if they truly want to emulate the goodwill and community support that the Sisters of Mercy have shown to our community.\u201d<\/p>\n

\"Peter
Peter Banko, CEO of Centura Health, was in town Tuesday to meet with medical staff, executives and members of Mercy Regional Medical Center\u2019s board of directors. At the same time, about 20 residents demonstrated outside the hospital, asking Centura to rejoin negotiations with the Southwest Health Alliance cooperative.<\/span>Jerry McBride\/Durango Herald<\/span><\/figcaption><\/figure>\n<\/p>

Centura Health\u2019s CEO Peter Banko was scheduled to have a question-and-answer session with Mercy physicians at 5 p.m. Tuesday.<\/p>\n

In an interview Tuesday with The Durango Herald<\/em>, Banko said Centura has been accused of \u201cbackdoor\u201d dealings, but rate negotiations around reductions in Mercy\u2019s prices have been ongoing on for some time.<\/p>\n

\u201cWe thought long and hard about our decision,\u201d he said.<\/p>\n

Banko said Mercy\u2019s reductions would affect its 35,000 customers \u2013 including the uninsured, self-insured and fully insured. People could see the rate cuts as early as this week for the uninsured, by July 1 for those who are self-insured or January 2021 for the fully insured.<\/p>\n

Banko said Mercy has been in Durango since 1882, and it remains committed \u201cto real, viable decisions that put savings in (community members\u2019) pockets.\u201d He added, \u201cWe\u2019re willing to work with Southwest Health Alliance.\u201d While Banko did not have specifics on what that could look like in the future, he said he would meet face to face with DiGiorgio on Tuesday evening.<\/p>\n

Peak Health Alliance, a health cooperative in Summit County, is helping Southwest Health Alliance develop its own plan. Centura Health was one of the first to partner with Peak, which gave community members in Summit County negotiating power and lowered health insurance premiums for residents by about 20%. Centura referenced its partnership with Peak in a news release Monday, saying, \u201cOne size doesn\u2019t fit all. What works in one community doesn\u2019t work in all 17 of our communities.\u201d<\/p>\n

Banko said he had concerns about using Peak Health Alliance as a \u201cmiddleman\u201d in negotiations, which centered on lessons he said Centura had learned in the partnership in Summit County. Banko said the rate discounts it provided to Peak did not go directly to consumers and eliminated choice from the insurance provider market.<\/p>\n

While Banko said Centura and Mercy were open to holding a community meeting, he could not commit to anything until Centura determined if \u201cthis really (was) a broad community issue.\u201d<\/p>\n

At the demonstration Tuesday, signs read: \u201cPeople over profit,\u201d \u201cFairness in healthcare,\u201d and \u201cWhat would Sisters of Mercy do?\u201d<\/p>\n

Suzy Phare, a steering committee member for the Southwest Health Alliance, said Tuesday the goal was to have Centura come back to the negotiating table, but she added Southwest Health Alliance would continue pursing its goal.<\/p>\n

\u201cI think there\u2019s other options,\u201d she said. \u201cIt\u2019s not dead in the water, by any means.\u201d<\/p>\n

lweber@durangoherald.com<\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Southwest Health System of Cortez plans talks in Grand Junction<\/p>\n","protected":false},"author":1,"featured_media":74986,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[],"tags":[13,28,1141,68,668,210],"naviga_topic":[],"class_list":["post-74985","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","tag-frontpage-lead","tag-headlines","tag-healthcare-provider","tag-mercy-regional-medical-center","tag-public-health","tag-southwest-health-system"],"acf":[],"author_name":"dh_admin","_links":{"self":[{"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/posts\/74985","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/comments?post=74985"}],"version-history":[{"count":1,"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/posts\/74985\/revisions"}],"predecessor-version":[{"id":90080,"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/posts\/74985\/revisions\/90080"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/media\/74986"}],"wp:attachment":[{"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/media?parent=74985"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/categories?post=74985"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/tags?post=74985"},{"taxonomy":"naviga_topic","embeddable":true,"href":"https:\/\/dh.durangoherald.com\/tj\/wp-json\/wp\/v2\/naviga_topic?post=74985"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}