Editorial: Health care stalemate

Sunday, Nov. 19, 2006 | 7:17 a.m.

Sadly we see a health care cold war brewing in the Las Vegas Valley and no good coming from the stalemate between Sierra Health Services and Sunrise Health.

Sierra insures nearly 600,000 people, roughly a third of Clark County's population, and Sunrise manages four hospitals - Sunrise Hospital, Sunrise Children's Hospital, South Hills Hospital and MountainView Hospital - and if a new contract isn't reached between the two companies by Dec. 31, thousands of people could face radical decisions in their health care.

This past week the Sun's editorial board spent time with executives from both companies, and we're troubled by what we heard. With the current contract near its end, the companies are supposed to be negotiating a new deal but instead are throwing stones at each other.

What they seem to agree on is this: Sunrise's parent, behemoth Hospital Corp. of America, wants to restructure the 18-year-old contract. But that is about all they agree on.

HCA says the contract is antiquated and doesn't adequately pay for its services, especially the new technology that helps people recover faster.

Sierra says HCA's proposal is outrageous because it would dramatically drive up costs and then premiums.

Executives from both companies argue passionately and make some valid points. And both sides say the other's proposals will be financially catastrophic. So they're not talking, instead letting the clock run, an old negotiating trick that adds pressure to the situation in hopes your opponent will fold.

Unfortunately the tactic puts hundreds of thousands of lives in flux as they look for different hospitals should the contract expire.

The problem is we don't know whom to believe because neither one will specify what the exact numbers of the contract are, so we're not sure what's reasonable in this situation.

Brian Robinson, president of HCA in Southern Nevada, offered a nice summary of his company's position, with some numbers in it, but he refuses to release the entire details of the contract. He said it's because they are "private companies" and the contract would give competitors a clear view into both companies. That would be a good point if the two companies hadn't taken their arguments public with newspaper ads designed to scare people.

Sierra warns doctors and employers to look elsewhere other than Sunrise's facilities and Sunrise warns that people could be without some of its unique and life-saving services should its contract with Sierra expire.

The companies need to start bargaining honestly. Both companies have shown they can play hardball - HCA has done so in other markets, Sierra has done so here. But it's long overdue for the overblown rhetoric to end. These companies should be acting like civic leaders and get back to the negotiating table.

In this space we have previously called for Gov. Kenny Guinn to get involved, but he has declined to do so. Nonetheless, the companies' postures call out for some type of mediation. Although they are private companies, they provide a significant public service.

Sierra executives say they are the David in this battle, facing a Goliath in Sunrise's parent. While Sunrise executives proudly note their parent company's size with a little bit of swagger, they say Sierra is the "800-pound gorilla" in this market.

They are both right - they are both big and they need to act like it. Now is the time to come to the table, swallow their pride, enlist a mediator if need be, and get a deal done for the good of Southern Nevada.