Anthem Blue Cross and Blue Shield health insurance company and Carson-Tahoe Hospital officials announced Monday they have negotiated a new contract.
That means Blue Cross patients will be able to enjoy the full range of benefits at Carson-Tahoe, officials said.
If negotiations had failed, about 1,400 patients in the Carson City-Douglas County area would have been forced to go to Barton Memorial Hospital or Washoe Medical Center for elective care.
Non-elective, or more critical care, would have been more expensive if an accord had not been reached. Barton and Washoe hospitals are more than 30 miles from Carson City.
Negotiations stalled last month and Blue Cross threatened to terminate its contract with Carson-Tahoe Hospital in early February. The contract would have terminated March 12, but negotiations were extended to March 21.
"The major stumbling block was trying to reach an agreement on competitive reimbursement rates," said Don Stengele, spokesman for Anthem Blue Cross.
"I understand the contract was signed late Friday afternoon, March 21," Stengele said. "The new contract starts April 1 and the interim agreement, which keeps benefits at the same rates as before the contract negotiations, will be effective until April 1."
Ed Epperson, Carson-Tahoe chief executive officer, said hospital officials are pleased with the outcome.
"Our focus has always been on our patients and making certain they could access health care locally," he said. "We are very satisfied with the spirit of our discussions and the resolution of our different perspectives, for the benefit of the community."
Normally, contracts between the hospital and insurance company are renewed each year, but this one will extend four years, Stengele said.
The negotiations were not affected by Carson-Tahoe's plans to build a new regional medical center, Epperson said.
Anthem Blue Cross and Blue Shield provides health-care benefits to more than 10.8 million people nationwide.
Among the oldest benefits health companies in Nevada, Blue Cross has offices in Reno and Las Vegas.