Allentown, Pa.-based Lehigh Valley Health Network said it is planning to terminate its contract with UnitedHealthcare unless the payer works with the health system to remedy reimbursement issues.
Without a resolution, LVHN will go out of network with UnitedHealthcare’s Medicare Advantage plans on Jan. 25, 2026 and commercial plans on April 25, 2026, according to an Oct. 27 news release from the health system.
LVHN merged with Philadelphia-based Jefferson Health in August 2024. No other Jefferson providers would be affected by LVHN’s split with UnitedHealthcare, according to the release.
The health system alleged that UnitedHealthcare is refusing to pay LVHN “in accordance with the rates and expectations that were originally agreed upon.” The system said it has been working for more than two years “to create a fairer relationship that better serves our patients.”
A UnitedHealthcare spokesperson told Becker’s that the company delivered a proposal to LVNH in April and “have yet to receive a counter proposal from the health system, whose last proposal was provided in December 2024 and included a near 30% price hike in the first year of our contract.”
The spokesman said the company is asking LVHN to join them at the negotiating table and “work toward an agreement that is affordable rather than using consumers as leverage to significantly drive up health care costs for Pennsylvanians and local companies.”
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