UnitedHealthcare calls out healthcare groups’ ‘cynical’ contract negotiation strategy

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UnitedHealthcare’s Mid-Atlantic CEO Joseph Ochipinti called out two healthcare groups for their “cynical” contract negotiation strategy in an Oct. 6 statement.

Mr. Ochipinti specifically drew attention to Baltimore-based Johns Hopkins Medicine and Fulton, Md.-based Capital Women’s Care, a large mid-Atlantic OB-GYN practice.

He said Johns Hopkins “demanded unacceptable stipulations asserted by no other health system in the country,” relating to a provision he claimed “would allow it to refuse treatment for any employer it does not want to do business with.” According to the statement, Johns Hopkins is no longer negotiating with UnitedHealthcare.

“Johns Hopkins has NO desire to turn any employer or patient away from our care EVER,” Johns Hopkins said in a statement on its website. “We do need United to enforce our mutual contract terms with its own employer clients. United is simply refusing to do so.” Other than Johns Hopkins All Children’s Hospital in Florida, the system has been completely out of network since Aug. 25.

Mr. Ochipinti said CWC requested steep payment increases that did not align with what other OB-GYN providers in the region sought. As of Aug. 1, CWC is out of network with UnitedHealthcare, but the organization said it is continuing to negotiate.

Maryland Insurance Commissioner Marie Grant is also getting involved, investigating what UnitedHealthcare’s networks would look like without these providers.

“They need to have adequate providers that can see Marylanders for all kinds of conditions, whether that be for things like pregnancy and childbirth or serious medical and rare conditions,” Ms. Grant told WMAR 2 News Baltimore. “But that all being said, I think one of the things that we’re learning, unfortunately, from this situation is that there may be places where Maryland law can be updated … I will say that I’ve been in touch with legislators and the Attorney General. Nothing I can report out definitively at this time, but I think there is broad interest across the board in making sure Marylanders are protected,” Grant added.

The network breaks in Maryland are the latest in a wave of contentious contract negotiations across the industry.

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