UnitedHealthcare members will have to pay more expensive, out-of-network costs at Hartford (Conn.) Hospital and The Hospital of Central Connecticut, a hospital with campuses in New Britain, Conn. and Southington, Conn., or find new providers if the insurer and Hartford HealthCare don't reach an agreement next month, according to a Hartford Courant report.
Hartford HealthCare, the hospitals' parent company, and UnitedHealthcare must reach an agreement by April 15. The contract also applies to United HealthCare subsidiary Oxford Health Plans.
James M. Blazar, chief strategy and transformation officer at Hartford HealthCare, wrote in a March 13 letter to employees that negotiations have been ongoing for several months, but both sides have still not agreed on a new contract, according to the report.
According to the report, Mr. Blazar wrote to employees that both parties are working on a "shared investment in primary care and case management programs" that improve health and reduce costs. Additionally, the report notes, he wrote that Hartford HealthCare wants to make sure the insurer's reimbursement rates keep up with the cost of staffing, equipment and supplies.
A UnitedHealthcare spokeswoman said in a statement that both parties are continuing contract discussions and "negotiating in good faith in order to reach a fair resolution and mutually acceptable agreement before the expiration date."
The contract dates vary for Hartford HealthCare's other hospitals. Contracts with William W. Backus Hospital in Norwich, MidState Medical Center in Meriden and Windham Hospital in Willimantic expire on May 26. Additionally, UnitedHealthcare's contract with the Hartford Physician Hospital Organization expires June 15.
More articles on healthcare finance:
3 emerging challenges for payment and delivery system reform
UCSF Medical Center, John Muir Health to develop accountable care network
The benefits of capturing waste heat