November 22, 2016

Important Update – Current Contract Negotiations with Sutter Health

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Health Net of California, Inc. and Health Net Life Insurance Company (Health Net), and Sutter Health are currently negotiating our contract, set to expire on December 31, 2016. While we are working in good faith to reach a fair agreement that offers sustained affordability to our members, if Health Net and Sutter Health are unable to complete a new contract, Sutter Health physicians, medical groups and hospitals will no longer participate in currently contracted Health Net networks.
In compliance with regulatory requirements, in the event the parties are not able to reach agreement for a renewal, affected members will receive a letter informing them of Sutter’s termination. As part of our contract with Sutter Health, impacted members will continue to have access to their Sutter provider during a transition period, prior to being assigned to their new provider. The letter will provide members the following details in the event of a termination:

  • HMO and Medicare Advantage members will receive written notice from Health Net at least 60 days prior to the change taking effect.
  • Their new primary care physician (PCP) and medical group.
  • The option and steps to select a new PCP or medical group, other than the one assigned, if desired.
  • PPO members who have accessed a Sutter provider for services in recent months will receive written notice of the provider termination.
  • Information about continuation of care assistance, if members or covered dependents are currently receiving ongoing medical treatment with a Sutter Health provider.

Health Net Lines of Business Affected by Negotiations

The contracts being negotiated apply to the following Health Net plan types:

  • Commercial HMO/POS
    • Large Group HMO
    • Small Group HMO
    • Blue and Gold Network
    • Large POS
    • Small POS
    • Flex-Funded HMO
  • Medicare
  • Medicare COB


Sutter Health providers are located in the following California counties:

Sutter Health Counties
Alameda Nevada San Mateo Stanislaus
Amador Placer Santa Barbara1 Sutter
Contra Costa Sacramento Santa Clara Yolo
Del Norte San Diego1 Santa Cruz Yuba
Lake San Francisco Shasta
Marin San Joaquin Solano
Merced San Louis Obispo1 Sonoma

1Surgery Center location only.

The contracts currently being negotiated include the following Sutter Health provider groups:

SMG – Sac/Placer Division
SMG – Yolo Division
Sutter Independent Physicians
Sutter North Medical Foundation
SMG – Solano Division
Sutter Gould Medical Foundation
Sutter Gould – San Joaquin
Sutter Gould — Los Banos
Central Valley Medical Group
Sutter Medical Group of the Redwoods
Physician Found Med Associates
SMGR – Marin Headlands Med Grp
Palo Alto Medical Clinic
Camino Medical Group
Santa Cruz Medical Clinic
Sutter East Bay Medical Foundation
SEBMF – Diablo Division


The contracts currently being negotiated include the following Sutter Health hospitals:

Sutter Health Hospitals
Sutter Medical Center – Castro Valley
(d.b.a. Eden Medical Center)
California Pacific Medical Center-Davies Campus
Alta Bates Summit Medical Center –
Alta Bates Campus
California Pacific Medical Center -Pacific Campus
Alta Bates Summit Medical Center –
Summit Campus
St. Luke’s Hospital
Sutter Amador Hospital Sutter Tracy Community Hospital
Sutter Delta Medical Center Mills Health Center (Mills Hospital)
Sutter Coast Hospital Menlo Park Surgical Hospital (MPSH)
Sutter Lakeside Hospital Peninsula Hospital
Novato Community Hospital Sutter Maternity and Surgery Center of Santa Cruz
Memorial Hospital  Los Banos Sutter Solano Medical Center
Suter Auburn Faith Sutter Santa Rosa Regional Hospital
Sutter Roseville Medical Center Memorial Medical Center
Sutter Medical Center Sacramento Sutter Surgical Hospital – North Valley
California Pacific Medical Center-California Campus Sutter Davis Hospital


Continuity of Care – Our Commitment to Members in the Event of a Sutter Termination

While we continue to negotiate with Sutter Health, our ultimate goal is to ensure our affected members experience seamless access to quality health care through continuity of care. Please advise your clients to call us if any of their Health Net members are currently under treatment with a Sutter Health provider. We will help make sure they continue to get the care they need.


What About Emergency Care?

In case of emergency, members should go to the nearest emergency or urgent care facility, even if it’s not a contracted Health Net provider. Members, or their family, should contact Health Net as soon as possible after care is received.
We’re Here For You

If you or your clients have any questions or concerns about Sutter Health and our provider network, please contact your Health Net sales consultant or Broker Services at 800-448-4411, Option 4, 9 a.m. – 5 p.m. PST. Thank you.

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