Calif. Blues says UCLA profits unreasonable

Blue Shield of California is using full-page newspaper ads to call out the University of California at Los Angeles (UCLA) for unreasonable profits, reported LA Weekly. Arguing that hospitals must help manage healthcare costs, Blue Shield singled out UCLA Medical Center for raking in profits of more than 10 percent. The insurer pointed out that it voluntarily capped its net income at 2 percent of revenue while UCLA Medical Center's rates have increased 98 percent. "Their current profit margin of 16.8% is more than four times the statewide average for hospitals," the insurer said in the ads: "Now they're demanding even more. We think it's time to say ‘enough' is too much." The ad campaign likely is in response to Blue Shield's contract impasse with UCLA that could keep the hospital out of its network. Article


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