NATCHEZ — Officials at Natchez Regional Medical Center believe a recent announcement by Natchez Community Hospital violates Community’s contractual obligations with Medicare and Blue Cross Blue Shield.

The controversy began last week, shortly after Regional announced it would waive co-pays and for Adams County employees at county-owned Regional.

Regional CEO Scott Phillips said the move provided a cost savings to county employees and would increase revenues at the hospital.

Shortly after learning of Regional’s plans, Community CEO Tim Trottier followed suit, saying the same discount would be offered to county employees at Community.

“It’s just not permissible,” Phillips said.

Attorneys for Regional are now investigating the matter.

Phillips said since Adams County is self-insured, it has the option to waive co-pay and deductibles for its own employees.

“It’s like an employee discount,” Phillips said.

Phillips said while he has not seen Community’s contract with Blue Cross Blue Shield, he said he has never seen any such contract that allowed a party to simply not collect co-pay and deductibles.

However, since the county is self-insured, county employees are eligible for co-pay and deductible waivers.

Additionally, Phillips said he is concerned Community’s move could prove costly to Adams County.

Since co-pays and deductibles are meant to be regulatory and designed to prevent insurance abuse, a lack of collection on Community’s part could allow county employees to seek medical attention when it’s not needed and generate excess cost to the county since the county pays for the insurance, Phillips said.

That’s would not hold true at Regional since the money would be spent at a county-owned property, Phillips said.

Additionally, Phillips said he believes Community’s actions could result in complications with complicated Medicare contracts and result in “disproportionate costs to Medicare they should not have to bear.”

Phillips said he plans to notify Medicare and Healthcare Management Associates, the company that owns Community, of Trottier’s decision.

“I think (Community) is in violation, and I think they should know,” Phillips said.

Trottier had little to say on the matter.

“This makes no sense to me. We are simply honoring the same discount NRMC is offering to county employees,” he said.

Supervisor Mike Lazarus said while he is aware of Regional’s concerns, he said he does not think Community would intentionally violate any contracts.

“We assume before they did anything they checked it out,” he said.