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Tenet, Keystone Mercy sign deal for 2 Philadelphia hospitals

Tenet Healthcare has reached an agreement with Medicaid managed care program Keystone Mercy Health Plan that covers Hahnemann University Hospital and St. Christopher's Hospital for Children in Philadelphia.

"This new agreement allows us to continue providing high quality care to the members of Keystone Mercy Health Plan," said Stephen L. Newman, MD, Tenet's COO. "Hahnemann University Hospital and St. Christopher's Hospital for Children offer patients access to a number of nationally recognized programs."

The agreement also covers physicians employed by subsidiaries of the two hospitals. Keystone Mercy Health Plan also has an agreement with the Drexel University College of Medicine, which represents Hahnemann's largest contingent of physicians.

Keystone Mercy serves more than 300,000 people in the greater Philadelphia area.

[See also: Aetna wins contract for Pennsylvania Medicaid program; GAO questions actuarial soundness of Medicaid Managed Care rates]

"Together, these hospitals and their doctors offer a unique mix of adult and pediatric specialty services that makes them a key part of the Philadelphia community and we are pleased that our members can continue to use their programs and services," said Jay Feldstein, DO, president of Pa. Managed Care Plans for the Keystone Mercy Health Plan.

Tenet Healthcare owns and operates 49 acute care hospitals in 11 states, as well as ambulatory surgery centers and diagnostic imaging centers. Hahnemann University Hospital and St. Christopher's Hospital for Children are the only two hospitals that the company operates in Pennsylvania.