UnitedHealthcare is planning to terminate its Medicaid managed care contract with Philadelphia-based Temple University Health System on Feb. 1 if the sides are unable to strike a new deal, the Philadelphia Business Journal reported Jan. 17.
UnitedHealthcare said the cost of care at Temple is "significantly higher than peer hospitals participating in our UnitedHealthcare Community Plan network in the Philadelphia area, yet the health system continues to demand additional price hikes that are not affordable or sustainable," according to the report.
Temple said UnitedHealthcare's decision is "regrettable," adding that hospitals are facing "are facing unprecedented challenges in providing patient care, and large insurance companies from outside of our region don't always seem to understand how healthcare is provided in Philadelphia," according to the report.
UnitedHealthcare's contract covers Temple University Hospital, Jeanes Hospital in Philadelphia and Temple's Readycare urgent care centers, according to the report.