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UnitedHealthcare, HCA Healthcare resolve contract dispute

If the organizations had failed to come to an agreement, about 38 hospitals would have been impacted across the four states.

Jeff Lagasse, Editor

Photo: Morsa Images/Getty Images

After months of negotiations, a contract dispute between UnitedHealthcare and HCA Healthcare has been resolved, with the two parties coming to an agreement hours before a September 1 deadline that would have interrupted network coverage in Texas, New Hampshire, South Carolina and Colorado.

"UnitedHealthcare and HCA-HealthONE have reached a multi-year agreement that ensures continued, uninterrupted network access to the health system's hospitals, facilities and physicians," UHC wrote on its website.

This affects members enrolled in employer-sponsored commercial plans, individual family plans and Medicare Advantage plans, including Group Retiree and Dual Special Needs plans, said UHC.

WHAT'S THE IMPACT?

If the two organizations had not come to an agreement, about 38 hospitals and affiliated locations would have been impacted across the four states.

UnitedHealthcare, the largest private insurer in the country, is owned by UnitedHealth Group, which in 2023 logged $370 billion in revenue and $22.4 billion in profit.

HCA, one of the country's largest provider organizations, boasts 186 hospitals and about 2,400 sites of care. Last year it pulled in $65 billion in total revenues and about $5.2 billion in income. HCA said it plans on making $5 billion in capital investments this year, with a large concentration in outpatient facilities. 

THE LARGER TREND

In July, 39 healthcare providers, along with the National Community Pharmacists Association, filed a class action lawsuit against UnitedHealth Group – plus subsidiaries Optum and Change Healthcare – over the Change Healthcare cyberattack that occurred this year, with plaintiffs claiming they still have not recovered financially from the attack.

The February 21 cyberattack disconnected Change from claims payments for hospitals and physician practices, disrupting provider revenue and financial stability to the point of potential bankruptcy for some practices.

HCA is expanding, with construction now underway on the new $231 million HCA Florida Gainesville Hospital, the latest hospital planned as part of the company's planned growth across the state. Community and hospital leaders kicked off the project Thursday with a groundbreaking ceremony at the site of the recently opened HCA Florida Gainesville Emergency Room, which will become a new full-service hospital over the next 18 months.

Jeff Lagasse is editor of Healthcare Finance News.
Email: jlagasse@himss.org
Healthcare Finance News is a HIMSS Media publication.