Covenant, which is owned by Renton, Wash.-based Providence, operates seven hospitals in Texas and New Mexico.
KYYW reported a statement from Covenant Sept. 1: “Covenant’s goal has been to reach fair and equitable contract terms. Unfortunately, Aetna remains unwilling to offer adequate reimbursement for vital health care services.”
“We are still waiting on Aetna to provide us with a viable option but please know we are still in discussions with Aetna,” Covenant wrote on its website. “We truly understand how important quality healthcare is to you and your family and hope that Aetna will accept our proposal.”
“Aetna did not initiate a termination of its agreement with Covenant Health; the contract expired on August 31,” an Aetna spokesperson told Becker’s. “For several months, we have worked hard to renew the contract at mutually agreeable terms that would provide reasonable rates for our customers and members, while still providing fair reimbursement to Covenant. Unfortunately, Covenant is requiring increases that are both unsustainable and significantly higher than costs charged by similar providers in the same geographic area. We’ve made significant efforts to prevent the termination of our relationship with Covenant Health and hope we can reach a mutually acceptable agreement shortly. However, at this time, Covenant providers do not participate in our networks.”
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