Dive Brief:
- Salem Health of Salem, Oregon and United Healthcare have reached an agreement to renew their contract in advance of its June 30 expiration. The companies signed the contract Friday afternoon.
- With the deadline looming, United Healthcare had sent letters earlier this month, to local policy holders, warning that negotiation difficulties could result in enrollees losing Salem Health as a preferred provider.
- Both companies reported that the main disagreement was the matter of how much Salem Health should receive for its services.
Dive Insight:
A disruption to in-network coverage would have impacted an estimated 10,000 United Healthcare customers with commercial and Medicare Advantage plans; that's the number that utilized Salem Health services over the past year, according to United Healthcare spokeswoman Kristen Hellmer.
The Salem Health system includes Salem Hospital, West Valley Hospital and Willamette Health Partners' clinics and labs.
Salem Health was reported to still be in the midst of negotiations with Regence BlueCross BlueShield. That contract expires this week, but officials say policyholders can continue to access Salem Health as an in-network provider for up to another 12 months.