Hospital-insurer relationships fraying

It seems as though each week we report on yet another hospital and insurer at odds over their contract. What's behind the sudden increase in contract disputes, such as UnitedHealthcare and HCA's ongoing battle? Some experts say that the slow growth of insurance premiums is causing insurers to try to cut costs as much as possible. But high healthcare costs aren't leaving hospitals with a lot of money to spare, so many insurers and hospitals have found themselves at an impasse. "This is new," William Custer of the Center for Health Services Research at Georgia State University tells the Tennessean. He adds, "Both sides are kind of surprised by each other's stance, and their willingness to stretch out the negotiations." The UnitedHealthcare/HCA dispute could also be a direct result of HCA's planned $33 billion buyout--$11 billion of that figure is debt, and the hospital chain may be trying to maximize the amount of money it gets from insurers.

For more on the ongoing hospital-insurer tussle:
- check out this report

Post a comment