Newark Hospital Terminates Contract with UnitedHealthcare

"United’s contract proposal is not reasonable and jeopardizes our ability to continue to deliver the quality care that our patients deserve," said Dr. Sonia Mehta, the regional CEO and chief medical officer of Prime Healthcare New Jersey, 

Prime Healthcare said it had learned that it had been underpaid as a result of new disclosure requirements by the Center for Medicaid Services that calls for hospitals to disclose their contracted rates.

"Undercutting our payments is unacceptable, and so we are taking the necessary step of providing notice of our intent to provide care out-of-network," Mehta said. "We realize it is a bold move, but a necessary one to separate our hospitals from organizations that work contrary to our mission and commitment to our patients."

Prime Healthcare's New Jersey hospitals will continue to honor the rates and services in the agreements until the end of the cooling off period, which ends December 16, 2021 for the Medicaid product and December 31, 2021 for the commercial and Medicare products.

In its statement, Prime Healthcare said patients can continue to rely on its hospitals for emergency services, regardless of insurance, and the hospitals are willing to negotiate single patient agreements for elective services. The hospitals will also honor all continuity of care services for United members. The hospitals will also honor all continuity of care services for United members.

The New Jersey Hospital Association has reported Prime Healthcare's hospitals deliver quality services with a cost of care that is among the lowest in the state.

“We are patient-focused and are committed to delivering the most compassionate care by exceptional physicians using state-of-the-art technology," Dr. Mehta said.

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published this page in News and Politics 2021-09-20 03:28:54 -0700