Keystone Mercy Health Plan Threatens to End Ties With Pennsylvania Hospital

Keystone Mercy Health Plan, the largest Medicaid HMO in the Philadelphia region, could end its relationship with Chester County Hospital in West Chester, Pa., if the hospital doesn’t agree to accept lower payments, according to a report in the Philadelphia Business Journal.

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Keystone Mercy’s contract with the hospital expires on Sept. 30, and termination of the contract would affect hospital-based outpatient services, services at the hospital’s prenatal clinic and physicians employed through the hospital’s OB/GYN and Women’s associates and physician network in addition to patients at Chester County Hospital.

Officials from Chester County Hospital say that the possible termination would hurt patients at the greatest risk, such as low-income, pregnant mothers.

Officials from Keystone Mercy, which is owned by Philadelphia-based Independence Blue Cross and Mercy Health System of Conshohocken, Pa., say that the company cannot afford the commercial payment rates required by the hospital, as state funding to Medicare programs trails the rate of healthcare inflation, and the current budget deficit will not improve the situation, according to the report.

Keystone Mercy patients will still be able to receive care from Main Line Health physicians and hospitals in the area as well as Phoenixville and Jennersville hospitals. According to the report, the HMO will begin notifying patients of the termination on Aug. 27.

Read the Business Journal’s report about Keystone Mercy’s possible split with Chester County Hospital.

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