.bodytext {float: left; } .floatimg-left-hort { float:left; margin-top:10px; margin-right: 10px; width:300px; clear:left;} .floatimg-left-caption-hort { float:left; margin-bottom:10px; width:300px; margin-right:10px; clear:left;} .floatimg-left-vert { float:left; margin-top:10px; margin-right:15px; width:200px;} .floatimg-left-caption-vert { float:left; margin-right:10px; margin-bottom:10px; font-size: 10px; width:200px;} .floatimg-right-hort { float:right; margin-top:10px; margin-left:10px; margin-bottom:10px; width: 300px;} .floatimg-right-caption-hort { float:left; margin-right:10px; margin-bottom:10px; width: 300px; font-size: 10px; } .floatimg-right-vert { float:right; margin-top:10px; margin-left:10px; margin-bottom:10px; width: 200px;} .floatimg-right-caption-vert { float:left; margin-right:10px; margin-bottom:10px; width: 200px; font-size: 10px; } .floatimgright-sidebar { float:right; margin-top:10px; margin-left:10px; margin-bottom:10px; width: 200px; border-top-style: double; border-top-color: black; border-bottom-style: double; border-bottom-color: black;} .floatimgright-sidebar p { line-height: 115%; text-indent: 10px; } .floatimgright-sidebar h4 { font-variant:small-caps; } .pullquote { float:right; margin-top:10px; margin-left:10px; margin-bottom:10px; width: 150px; background: url(http://www.dmbusinessdaily.com/DAILY/editorial/extras/closequote.gif) no-repeat bottom right !important ; line-height: 150%; font-size: 125%; border-top: 1px solid; border-bottom: 1px solid;} .floatvidleft { float:left; margin-bottom:10px; width:325px; margin-right:10px; clear:left;} .floatvidright { float:right; margin-bottom:10px; width:325px; margin-right:10px; clear:left;} Wellmark Blue Cross and Blue Shield announced this afternoon it has reached an agreement with Iowa Health – Des Moines that ends a dispute between the health insurer and the hospital group over the planned Michael R. Myers Hospital in West Des Moines.

Under the 10-year contract, Wellmark will provide discounted rates for its members at the new hospital. In return, Iowa Health has agreed to reduce its total licensed-bed capacity for its Des Moines hospitals and to maintain approximately the same staffing levels it presently has.

Iowa Health has agreed to a “significantly lower” reimbursement rate from Wellmark for services provided at its West Des Moines hospital than the insurer provides for any of its other Des Moines locations, because the hospital group is “anticipating cost savings and efficiencies from the new construction,” Wellmark said in a release.

Sid Ramsey, an Iowa Health spokesman, said he’s pleased that Wellmark has decided to support its application with the state, which already included the proposed reduction in bed capacity. “I think that signaled to (Wellmark) that we are looking to be as efficient and cost-effective as we can be,” he said.

Both Iowa Health and its competitor, Mercy Medical Center, have each planned to build new hospitals in West Des Moines they say will replace existing hospitals in Des Moines.

In June, Wellmark reached a separate agreement with Mercy, which has since proceeded with construction of Mercy West Lakes Hospital in West Des Moines. That 10-year contract calls for Mercy to open a smaller, 82-bed hospital that can be expanded with increased demand, and to accept “significantly lower” reimbursement rates than the Mercy Capitol hospital it will replace.

Iowa Health’s certificate of need application for the 95-bed hospital is scheduled to be heard by the Iowa Health Facilities Council at its Oct. 24-25 meeting.

Wellmark will continue to pursue lawsuits it filed earlier this year seeking a ruling on whether the state’s interpretation of the certificate of need program has been correctly applied when evaluating need for so-called replacement facilities rather than new facilities. Those lawsuits are unaffected by the agreement, Wellmark said.