HUNTSVILLE, Ala. — Huntsville Hospital said on Thursday that it is terminating its partnership as member of the UnitedHealthcare network of hospitals after reaching an impasse in negotiations for a new agreement.
The decision impacts United’s commercial health insurance and Medicare Advantage plans. It does not impact United’s VA managed care plan for veterans. It also does not impact HH physician network, which remains in UnitedHealthcare's network.
In the hospital system's statement, they said that Helen Keller Hospital in Sheffield will be the first to leave the United network when their contract ends on October 15.
Highlands Medical Center in Scottsboro will leave the United network on October 31; Huntsville Hospital and Madison Hospital will become out-of-network hospitals on November 14. Decatur Morgan Hospital will no longer be participating November 30. The remaining HH System hospitals will exit in 2025.
The system says the decision came after "several months of disappointing negotiations" with United to extend their partnership. "The decision was not made hastily, and we continue to pursue a resolution," HH said. "For more than a year, HH Health has been working towards a mutually beneficial contract with UnitedHealthcare. To date, HH’s efforts have not been met with the same level of care."
The hospital system claims UnitedHealthcare has not paid HH the amount owed from its current agreement "Their denial rate on patient claims is 75 percent higher than other like insurers," HH said.
In response, UnitedHealthcare provided the following statement to FOX54:
“Huntsville Hospital Health System issued a notice to end our contract for its hospitals and is demanding an over 25% price hike in just one year, despite already being nearly 20% higher than the average cost of other hospitals in our network in northern Alabama. We are committed to continued good-faith negotiation with the goal of reaching an agreement that ensures continued, uninterrupted network access to the health system's hospitals. We urge Huntsville Hospital Health System to provide a proposal that's realistic and affordable for Alabama families and employers.”
A spokesperson for UnitedHealthcare said they remain in active negotiations with the Huntsville Hospital system. "Our top priority is to reach an agreement that is affordable and sustainable for Alabama residents and employers while ensuring continued, uninterrupted access to the health system," they said.
UnitedHealthcare subscribers who have questions should contact their UnitedHealthcare representative at 1-877-298-2341. As a reminder, CMS Medicare Open Enrollment begins October 15 through December 7. Patients can view plan options at Medicare.gov.
