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Cigna and Dignity Health System fail to reach deal on hospital contract

January 01, 2020
Area(s) of Interest: Practice Management Payor Contracting 


After months of unproductive negotiations, Cigna’s hospital contract with Dignity Health in California ended on December 31, 2019. The terminations will occur as follows:

  • Dignity Health California hospitals, ambulatory surgery centers, and ancillary provider agreements will terminate on December 31, 2019.
  • PPO agreements for Dignity Health Medical Foundation Physicians and Hospital-based Clinics will terminate on January 31, 2020.
  • HMO agreements for Dignity Health Medical Foundation physicians will terminate on March 31, 2020.

According to a notice sent in early December, physicians must obtain unrestricted admitting privileges at another in-network hospital or make arrangements to admit Cigna patients to another hospital in its network. Failure to do so will result in termination of their Cigna contracts.

Physicians who can attest to having admitting privileges at another Cigna hospital or who have arrangements with a participating provider to admit Cigna patients at another contracted hospital should complete the attestation and return it to Cigna immediately.

Patients may be able to continue to see their out-of-network physicians under California’s continuity of care law. Under continuity of care laws, patients with an acute condition, serious chronic condition, duration of a pregnancy, duration of a terminal illness, care of children between birth and 36 months, or for the performance of a surgery or other procedure that has been authorized, may qualify to request continuity of care.

For information on requesting continuity of care, Cigna has prepared a resource on Transition of Care/Continuity of Care.  For questions on continuity of care or for more information, physicians should call Cigna Customer Service at (800) 882-4462.

For more information on continuity of care requirements, see CMA health law library document #7051, “Contract Termination By Physicians and Continuity of Care Provisions.”

Contact: CMA’s Reimbursement Helpline at (888) 401-5911 or economicservices@cmadocs.org.

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