The Sisters of St. Francis hospital system said it will hold off terminating a contract with insurance provider Anthem Blue Cross and Blue Shield until Friday.

Negotiations progressed after a weekend of "intense discussion," the two organizations said in a prepared release.

Both sides are confident that a long term contract extension will be completed in a few days and finalized on Friday, the release said.

Negotiations over the contract, originally set to expire Sunday, had broken down in a dispute over rates and other issues.

Anthem had rejected a Sisters of St. Francis proposal over rate demands Anthem said were unacceptable.

The Sisters of St. Francis system said it asked for rates consistent with others in the market and competitive with what Anthem pays other hospitals and physicians.

Talks continued on Monday, spokesmen for the hospital system and Anthem said.

The contract covers St. Anthony hospitals in Crown Point and Michigan City; St. Margaret Mercy hospitals in Dyer and Hammond and the Franciscan Physicians Hospital in Munster, as well as Sisters of St. Francis hospitals in other parts of Indiana.