Key Highlights
- Cigna plans to remove East Tennessee Children’s Hospital from its network by March 1.
- Over 27,000 patients rely on Cigna for in-network coverage with ETCH.
- Both parties are committed to negotiating a deal before the contract ends.
- The hospital claims it is significantly less expensive compared to other local hospitals and children’s hospitals nationwide.
Cigna and East Tennessee Children’s Hospital at Odds Over Network Coverage
KNOXVILLE, Tenn. (WVLT) – Cigna Insurance is set to remove East Tennessee Children’s Hospital from its network by March 1, potentially impacting thousands of patients who rely on in-network coverage with the hospital.
Background and Conflict
The controversy stems from a termination notice issued by Cigna on May 27, 2025. According to Cigna’s statement, ETCH is more expensive than nearby hospitals, which prompted them to terminate their agreement. However, East Tennessee Children’s Hospital (ETCH) disputes this claim and maintains that its costs are comparable or even lower than those of other children’s hospitals nationwide.
Disagreements Over Costs and Network Status
A hospital representative stated, “Cigna is making an apples to oranges comparison as we are the only children’s hospital in the region. Our expenses are in-line or less than those of any other free-standing children’s hospitals like us in the country.” This statement highlights ETCH’s belief that its financial practices and costs should be evaluated differently from those of general hospitals.
On the other hand, Cigna defended its decision by stating, “Unfortunately, ETCH is already significantly more expensive than other local hospitals, and they are threatening to leave our network March 1 unless we agree to their demands for more.” This assertion suggests that Cigna views ETCH’s higher costs as a primary factor in the dispute.
Impact on Patients and Community
The situation has left families of ETCH patients scrambling. The hospital informed them about the Cigna issue via letter on December 30, 2025, giving them just two months to find specialized care if a deal is not reached.
ETCH spokesperson emphasized, “Repeated good-faith efforts have been made by us, and we will continue to advocate for our patients and families.” This statement reflects the hospital’s commitment to finding a resolution that benefits its patient community. Cigna echoed this sentiment, stating, “We remain committed to negotiating in good faith to reach a fair, sustainable agreement before the contract ends on March 1.”
Long-Term Implications
The potential loss of in-network coverage for ETCH would mark the end of a 30-year partnership and an 18-year agreement. This situation not only affects patients but also raises broader questions about the future of specialized healthcare services in East Tennessee.
Both parties are hopeful that through negotiations, they can find a solution that ensures continued coverage for ETCH’s patient base. However, the timeline is tight, and the outcome remains uncertain as both sides gear up for what could be a critical negotiation period.
As negotiations continue, the community closely watches the developments to ensure that these specialized healthcare services remain accessible to those who need them most.