Business & Tech

ECHN Boss Takes His Shots At UnitedHealthcare

ECHN CEO says he wants to correct misleading statements, but neither side will address what it will take to get a deal done.

The war of words between Eastern Connecticut Health Network and UnitedHealthcare continues.

This time, Peter J. Karl, ECHN's president and chief executive officer, took his shots.

In a news release distributed on Tuesday, Karl said that he has informed Stephen J. Hemsley, the president and CEO of UnitedHealth Group, as well as representatives of UnitedHealthcare/Oxford Health Plans, of his "deep disappointment over public misstatements made last week by a spokeswoman for the company." Karl said, "These statements were made shortly after ECHN, in an effort to be transparent, notified its patients and physicians of its intention to terminate its contract with United unless the parties could negotiate fair and reasonable reimbursement rates."

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No specific statements were cited in the news release.

Last week, ECHN officials, elaborating on a letter to patients sent by Karl in late August,said in a news release that its relationship with United would be terminated when the current contract expires on Oct. 15 unless a new rate agreement is in place.

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Karl told patients United has not presented a contract proposal "based on industry standards that ensures suitable reimbursement" for services.

Both sides are blaming the situation on each other. Both sides were asked last week what it would take to get them to the bargaining table, but neither has responded with a statement.

"Because of the deliberate misrepresentations made by United to the media, it is critical for us to correct the record," Karl said. "United's comments paint an incomplete, inaccurate and misleading picture of our ongoing rate negotiations and ECHN’s pricing. We are seeking fair and reasonable reimbursement levels from United that will allow us to provide quality care at rates that are not substantially and unfairly below market price."

A United spokeswoman could not be reached for comment on what she may have said when addressing the situation last week. United said coverage has been "fair and balanced."

ECHN is accusing United of offering below-market reimbursement rates.

"While ECHN contends that United’s apparent attempt to gain an unfair market advantage by proposing predatory pricing is regrettable, we remain committed to trying to achieve a fair and reasonable rate settlement in order that United’s patient-members in our service area are not denied access to coverage from ECHN or any of our affiliates," Karl said.

ECHN operates both Manchester Memorial Hospital and Rockville general Hospital. It also operates Woodlake at Tolland and a medical complex on Route 30 in Vernon.

According to Karl, last year alone ECHN reinvested more than $14million into the communities it serves in uncompensated care for "uninsured and underinsured residents."

"We will continue to negotiate in earnest on behalf of thepatients who could be impacted in our community to ensure continued access to quality health care that is close to home," Karl said.


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