Tennessee-based health services firm Healthways has agreed to pay $9.4 million to Blue Cross and Blue Shield of Minnesota to resolve a contract dispute, the company announced last week.
Under the settlement, Healthways agrees to pay BCBSMN a total of $4 million by the end of this month and a second payment of $5.5 million in January 2015. The settlement amount will be incurred as a charge within Healthways' first quarter 2014 results, the company said in a statement.
The dispute began after Blue Cross in 2008 ended a contract it had with Healthways since 2001 to provide disease-management telehealth services for its members. The insurer opted to develop its own program to provide such services.