CHI Memorial Hospital in Chattanooga, Tenn., notified affiliated providers it failed to negotiate a new contract with UnitedHealthcare, Times Free Press reports.
CHI Memorial sent letters to its physicians Tuesday that said the hospital will leave UnitedHealthcare's network Nov. 1. Both hospital and insurance officials attributed the impasse to disagreements on reimbursement rates.
"All we are asking for is a rate adjustment that is in line with the market, and recognizes the value of Chattanooga's only 4-star health system as rated by Medicare Compare and the only hospital recognized as a Best Regional Hospital by U.S. News & World Report," CHI Memorial CEO Larry Schumacher, told Times Free Press.
UnitedHealthcare issued a response Tuesday, saying CHI Memorial requested unreasonable rate hikes.
"CHI Memorial wants to raise the cost of care at its hospitals by double digits, and their proposed rate increases would result in our members and local employers both paying more for their healthcare for the next several years," UnitedHealthcare said in a statement. "We have committed to a relationship with CHI that is based on paying for increased quality and promoting better health for the people we serve and hope they will share this focus."
In a letter to policyholders, UnitedHealthcare recommended members use healthcare services at CHI Memorial's regional competitors that are also in UnitedHealthcare's network — Chattanooga-based Erlanger Health System and ParkridgeMedicalCenter.