Managed Care Plan Terminates Medicaid Contract With 3 HMA Hospitals

Gateway Health Plan, a managed care plan that covers Medicare and Medicaid beneficiaries in Pennsylvania, has ended its Medicaid contract with three area hospitals, all of which are operated by Naples, Fla.-based Health Management Associates, according to a Central Penn Business Journal report.

The three hospitals that will lose in-network privileges with Gateway are Carlisle (Pa.) Regional Medical Center, Lancaster (Pa.) Regional Medical Center and Heart of Lancaster Regional Medical Center.

Gateway’s decision to drop Medicaid at the three for-profit hospitals was based on failed contract negotiations that had been ongoing for the past year, according to the report.

CRMC said talks fell apart because Gateway would have “decreased the rates to be paid to the hospitals substantially, while hospital costs have continued to increase,” according to the report.

Gateway Medicaid members will have the ability to switch to a new managed care provider, and the three hospitals will still accept all Gateway Medicare members.

Managed Care Plan Terminates Medicaid Contract With 3 HMA Hospitals

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