FOX Translator
No data currently available.
No data currently available.
TITLE
We like to think that when we deposit a dollar at the bank, it goes into a big vault and we can pull out that same dollar at any time. But that¿s not how the U.S. banking system works. Banks take that money and invest it to make money themselves, so cash gets spread around. This, naturally, leads to a big risk: What happens if those investments go sour? Well, you¿d be out of luck. You can¿t get your dollar back.
The Federal Reserve doesn¿t like that scenario, so it prohibits banks from putting all the cash it has on deposit on the line. In fact, the Fed forces banks to keep a portion of their assets at the Federal Reserve itself, to make sure that some of your assets won¿t get squandered if the bank¿s bets go south. These are called ¿reserves,¿ (hence, Federal Reserve. Got it? Good), and usually amount to 10% of the total cash kept in checking accounts.
These reserves are never exactly 10%, and banks like to keep a little extra in reserve ¿ not, as you might think, to make you more comfortable that they¿re in good financial shape, but rather so they can take that excess and lend it to other banks and make money off it. (They¿re banks, they can¿t help themselves.) The rate at which they make these loans is called the Federal Funds rate, which is set by the Federal Reserve¿s Federal Open Market Committee.
When you hear people chattering about how the Fed cut or hiked interest rates, this is what they¿re talking about: the interest rate banks can charge for lending money from their reserves. This begs the question: If these are essentially loans between banks, why is the Fed Funds rate so important for the rest of the economy?
Well, simply put, because loans make the financial world go round. Bank A lends Bank B $10,000 at a Fed Funds rate of 5%. Bank B then lends out $10,000 to a small business at 7%. The small business then takes that money and expands the business and hires new workers. Now someone is employed, Bank B has made interest off the loan, and Bank A is the richer for making it all happen. It¿s perhaps overly simplistic, but you get the idea. When you want the economy to thrive, you make lending cheaper.
Of course, sometimes you don¿t want the economy to thrive. In fact, you might want it to cool down, mostly to avoid money flooding the system and causing inflation. In that case, the Fed raises interest rates, making it difficult to lend or borrow.
Home / Markets / Industries / Health Care
Friday, May 09, 2008
CIGNA HealthCare of Arizona and Catholic Healthcare West Reach Agreement
Comtex
PHOENIX, May 9, 2008 /PRNewswire via COMTEX News Network/ ----CIGNA HealthCare of Arizona and Catholic Healthcare West (CHW) have announced that effective immediately, CIGNA plan members will have in-network access to the services and care provided by Catholic Healthcare West facilities and providers. The contract covers Catholic Healthcare West's three Arizona hospitals, including St. Joseph's Hospital and Medical Center, Chandler Regional Medical Center, Mercy Gilbert Medical Center, and affiliated facilities and physician practices in the Phoenix metropolitan area. Coverage is retroactive to midnight April 25th, the prior contract termination date.
"We are pleased that we have been able to come to mutually agreeable terms with Catholic Healthcare West," said Kurt A. Weimer, President and General Manager, CIGNA HealthCare of Arizona. "Our goal is to offer employers and members an expansive provider network which gives our members greater flexibility and control in choosing the health care provider that best meets their personal needs."
"We are very pleased that we were able to reach an acceptable agreement with CIGNA," said David G. Covert, president and CEO, Chandler Regional Medical Center/ CHW East Valley Service Area. "We have been working very hard to ensure CIGNA members could continue to receive quality, compassionate care at our facilities."
CIGNA HealthCare members in the Phoenix metropolitan area will have in-network access to Catholic Healthcare West's wide-ranging medical services and programs, including neurology, cardiology, pediatrics, women's services, orthopedics, oncology, rehabilitation and maternity care.
CIGNA members with questions about their coverage should contact CIGNA customer service. If a patient visit or procedure was cancelled this past week, patients are asked to please call their physician office to reschedule.
About CIGNA HealthCare of Arizona
With more than 35 years of history, CIGNA HealthCare of Arizona, Inc. is one of the oldest and largest health plans in the state. CIGNA HealthCare of Arizona provides health care coverage and employee benefit services to nearly 350,000 individuals throughout the state. CIGNA Medical Group, the medical group practice division of CIGNA HealthCare of Arizona, is one of the Valley's largest multi-specialty group practices with 21 offices located throughout metropolitan Phoenix. "CIGNA HealthCare" refers to various operating subsidiaries of CIGNA Corporation (NYSE: CI). Products and services are provided by these operating subsidiaries and not by CIGNA Corporation.
About Catholic Healthcare West
Catholic Healthcare West (CHW) is the eighth largest hospital system in the nation and the largest not-for-profit hospital provider in the West. Founded in 1986, the CHW network of more than 9,500 physicians and approximately 53,000 employees serve a population spanning 22 million people at 41 hospitals across California, Arizona, and Nevada. CHW is committed to delivering compassionate, high-quality, affordable healthcare services with special attention to the poor and underserved. In 2007, CHW provided $922 million in charity care, community benefits, and unreimbursed patient care.
SOURCE CIGNA HealthCare of Arizona
Copyright (C) 2008 PR Newswire. All rights reserved
Market Snapshot
| Symbol | Last Price | Netchange | Volume |
|---|---|---|---|
| -- | -- | -- | -- |
| -- | -- | -- | -- |
| -- | -- | -- | -- |
| -- | -- | -- | -- |
| -- | -- | -- | -- |
