The parties negotiated leading up to the Oct. 1 deadline but failed to reach a solution that would reup the contract, according to WKHY.
Catawba Valley Medical Center alleged that UnitedHealthcare attempted to undercut proposals even after the provider lowered rates, according to a news release. The provider is contacting state and national authorities regarding the termination.
“We are very disappointed that the largest health insurance company in the world, which earned approximately $22 billion in the last 12 months, has chosen to terminate the relationship with our community hospital during the COVID-19 pandemic,” the medical center said in a statement.
UnitedHealthcare claims Catawba Valley Medical Center’s rates are above the Charlotte-area and state’s median rates for providers in its network, according to the insurer. The rates the insurer proposed could drive down healthcare costs by $8 million in a year.
“Catawba Valley Health System is the most expensive health system in Catawba County,” a UnitedHealthcare spokesperson told Becker’s. “Agreeing to CVHC’s rate requests would drive up health care costs and compromise our ability to follow through on our commitment to making health care more affordable for the members and employer customers we serve in Catawba County. We hope it will work with us to ensure the people we serve have continued access to care that is both high quality and affordable.”
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.