Keystone Mercy, Crozer-Keystone sign contract

After months of negotiating that left thousands of patients in insurance limbo, Crozer-Keystone Health System and Keystone Mercy Health Plan signed a contract Friday afternoon, hours before the old one was set to lapse.

Earlier this week, Keystone Mercy had mailed letters to 5,000 members in Delaware County, assigning them to new primary-care doctors willing to accept the region's largest Medicaid managed-care plan. Thousands more already had chosen new doctors outside the Crozer system.

The new agreement, which runs until the end of 2011, takes effect Saturday. Details were not disclosed. Crozer, which operates five hospitals, said it was absorbing a $9 million reduction in rates.

In prepared statements, both sides said they regretted the disruption their dispute had caused patients.

"We've been very active in reaching out to our members leading up to this moment," said Jay Feldstein, corporate chief medical officer and interim regional president for Keystone Mercy, "and we will use that same energy to help answer our members' questions and help those who changed doctors to switch back if they wish."