Dave Allazetta
UnitedHealthcare is honored to serve more than 2 million Arizonans and support their access to quality, affordable health care from more than 26,000 health-care professionals and nearly 100 hospitals across the state. For the last several months, we have been negotiating in good faith with Northwest Healthcare to renew both their hospitals’ and physicians’ participation in our network for employer-sponsored, Medicare Advantage and Medicaid health plans.
Just recently, I reached out to Northwest’s local CEO in hopes of reaching an agreement quickly and amicably. Instead, our team was redirected out of state to negotiate with representatives of Northwest’s Tennessee-based parent company. After months of meetings and conversations, we remain committed to renewing Northwest’s participation in our network given their current contract expires on May 1.
UnitedHealthcare wants nothing more than to continue our relationship with Northwest. In fact, we are offering to reward Northwest for the important services it provides to our members in Southern Arizona if the health-care system will commit to a value-based care model. Simply stated, value-based care means a portion of the health-care system’s payments from UnitedHealthcare would be based on how it performs against key quality measures and improved health outcomes for its patients.
Paying for performance has become an industry standard. More than 1,100 hospitals nationwide currently participate in a value-based care model with UnitedHealthcare, touching the lives of approximately 15 million patients who we collectively serve. In fact, all Arizona hospitals eligible for a value-based care program either participate today or are in the process of entering into a value-based care model with UnitedHealthcare. Only Northwest has been unwilling to adopt this model.
Instead, the hospital system is demanding a 27 percent rate increase for employer-sponsored and individual health plans over the next three years. If we agreed to those demands, the amount local employers and employees pay for their health coverage would have to increase to cover the higher costs. For example, Northwest’s rate demands would mean an emergency room visit or outpatient surgery at a Northwest hospital would cost approximately $1,000 more.
Accepting Northwest’s proposal to raise the cost of care over the next three years would have a direct financial impact on all those members who rely on us to provide affordable, quality care, as well as their employers who have committed to providing competitive medical benefits.
If we are unable to reach an agreement with Northwest Healthcare by May 1, you still have many choices for quality care throughout Tucson. UnitedHealthcare has value-based care contracts with Banner-UMC, Carondelet and Tucson Medical Center; and we have more than 7,000 in-network physicians practicing throughout the Tucson metro area and surrounding counties. We urge Northwest Healthcare to join our value-based care program so that tens of thousands of UnitedHealthcare members in Tucson and surrounding communities can retain access to its hospitals, physicians and specialists.
Please know that if you are a UnitedHealthcare member who is currently undergoing treatment, pregnant, or scheduled for a procedure at Northwest Healthcare, you may qualify for continuity of care coverage after May 1, 2017. UnitedHealthcare members with questions or concerns should call the number on the back of their health-care coverage card.
Thank you for your support as we continue these important negotiations.
