Birmingham, September 5, 2025
News Summary
Birmingham is witnessing significant advancements in healthcare as J.L. Morgan & Assoc. has secured a $14 billion contract with the Department of Veterans Affairs. This contract, part of the Integrated Healthcare Transformation (IHT) 2.0 program, focuses on improving healthcare quality, patient experience, and delivering value-based healthcare for veterans. Additionally, UAB Health System has reached a multi-year agreement with UnitedHealthcare, ensuring uninterrupted care for 1.4 million residents in Alabama. Together, these developments promise a brighter future for healthcare delivery in Birmingham.
Exciting Developments in Birmingham’s Healthcare Landscape
The city of Birmingham is buzzing with positive news as J.L. Morgan & Assoc., a company renowned for its expertise in healthcare data and quality improvement, has landed a whopping $14 billion contract with the Department of Veterans Affairs. This substantial contract spans a term of ten years and is a crucial component of the department’s ambitious Integrated Healthcare Transformation (IHT) 2.0 program.
What Does the Contract Entail?
As part of this significant agreement, J.L. Morgan & Assoc. will be collaborating with ReefPoint Group, a respected healthcare consulting and data services firm based in Virginia. The focus will be on critical areas such as healthcare quality measurement, survey operations, patient experience analytics, and strategic communications. This collaborative effort involves a diverse mix of entities, ranging from small startups to large companies, academic institutions, and nonprofit organizations, all working together to enhance healthcare services for veterans.
The Goal of Integrated Healthcare Transformation 2.0
The primary aim of the IHT 2.0 contract is to promote value-based healthcare planning. This innovative approach seeks to minimize hospital readmissions and enhance patient satisfaction strategies. By investing in these transformation services, the Department of Veterans Affairs is making strides toward ensuring that veterans receive the quality and efficient healthcare they deserve.
Another Important Development at UAB Health System
Alongside the news of J.L. Morgan & Assoc.’s impressive contract, the UAB Health System is also making headlines. The health system recently reached a tentative agreement with UnitedHealthcare for a new health insurance contract that will remain effective for multiple years. This new arrangement is crucial because the previous agreement was set to expire at the end of July 2025. Thanks to this timely agreement, UnitedHealthcare members can continue accessing all UAB and UAB-affiliated medical providers without any service interruptions.
Benefits to Alabamians
UAB Health System plays a pivotal role in the healthcare landscape of Alabama, serving approximately 1.4 million residents. The discussions leading up to this new contract involved concerns over issues like below-market reimbursement rates, excessive claim denials, and delays in payments. Given that UnitedHealthcare reported an impressive $14.4 billion in earnings during 2024—along with over $6 billion profit in the first quarter of 2025—contract negotiations focused on ensuring fair terms for healthcare providers.
Future Outlook
The agreement reached between UAB and UnitedHealthcare will provide continuous support to patients, with a guarantee of uninterrupted care through to August 2028. It’s worth noting that issues had previously arisen during contract discussions between these two entities in 2019, but they were successfully resolved just before the deadline.
With these two major agreements, Birmingham is making significant strides in improving its healthcare system. The collaboration between J.L. Morgan & Assoc. and the Department of Veterans Affairs, along with the agreement between UAB Health System and UnitedHealthcare, showcases a promising future for healthcare delivery in the region.
Frequently Asked Questions
What is the value of the contract awarded to J.L. Morgan & Assoc.?
The contract is valued at $14 billion and spans a duration of ten years.
What is the purpose of the Integrated Healthcare Transformation (IHT) 2.0 program?
The program aims to enhance healthcare quality, minimize readmissions, and improve patient satisfaction through value-based planning.
How many residents does UAB Health System serve?
UAB Health System serves around 1.4 million residents in Alabama.
What key issues led to the health insurance contract negotiations between UAB and UnitedHealthcare?
Concerns regarding below-market reimbursement rates, excessive claim denials, and delayed payments prompted the discussions.
When is the new health insurance agreement set to remain effective until?
The agreement is set to provide care continuity through August 2028.
Key Features Summary
| Feature | Details |
|---|---|
| Contract Value | $14 billion |
| Partnerships | J.L. Morgan & Assoc. with ReefPoint Group and other entities |
| Duration | 10 years |
| Main Goals | Value-based healthcare planning, reduce readmissions, improve patient satisfaction |
| UAB Health System | Serves 1.4 million Alabamians, multi-year agreement with UnitedHealthcare |
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Additional Resources
- AL.com: Birmingham Healthcare Firm Has Share in $14 Billion Federal Contract
- WBRC: UAB & UnitedHealthcare Reach Agreement in Principle for New Health Insurance Contract
- ABC 33/40: UnitedHealthcare Customers May Lose In-Network Access to UAB Health System
- Rocket City Now: Health Care Giants Reach Tentative Agreement on Expiration Day
- Bham Now: UAB and UnitedHealthcare Reach Tentative Agreement
- Wikipedia: Health Care in the United States
- Google Search: Birmingham healthcare news
- Google Scholar: Healthcare Quality Measurement
- Encyclopedia Britannica: Health Care
- Google News: UAB Health System UnitedHealthcare
Author: STAFF HERE BIRMINGHAM WRITER
The BIRMINGHAM STAFF WRITER represents the experienced team at HEREBirmingham.com, your go-to source for actionable local news and information in Birmingham, Jefferson County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Sidewalk Film Festival, Sloss Music & Arts Festival, Magic City Classic, and civil rights commemorations. Our coverage extends to key organizations like the Birmingham Business Alliance and the Birmingham Civil Rights Institute, plus leading businesses in healthcare, finance, and manufacturing that power the local economy such as UAB Medicine, Regions Bank, and Encompass Health. As part of the broader HERE network, including HEREHuntsville.com, we provide comprehensive, credible insights into Alabama's dynamic landscape.
