In a Feb. 28 rating action, Moody’s said U.S. Anesthesia Partners’ earnings could face erosion because UnitedHealth Group canceled its in-network contracts with the provider group in Texas. The contract represents about 10 percent of U.S. Anesthesia Partners’ annual revenues, and is expected to be terminated in April 2020.
“Moody’s believes that the two companies will eventually agree on modified contract terms,” the ratings action said. “However, the modified contracts could come with lower reimbursement rates for USAP, which will reduce profitability. Further, a drawn-out negotiation process may lead to disruption to hospital customers and contract losses.”
More articles on payers:
BCBS of Texas to reimburse out-of-network ER claims, pay $10M fine
BCBS of North Carolina wins $9.4B contract to manage state health plan
BCBS of North Carolina’s net income tumbles $193M on ‘record-high’ expenses
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.
