UAB Health System and UnitedHealthcare Negotiations Impacting Patients

News Summary

UAB Health System is in negotiations with UnitedHealthcare, with their contract set to expire soon. If no agreement is reached, UHC customers will lose in-network access beginning August 1, affecting millions of patients in Alabama. UAB officials express concerns about the negotiation’s impact on patient care and advocate for continuous access to their healthcare services.

Birmingham, Alabama – UAB Health System is currently in negotiations with UnitedHealthcare (UHC) regarding their contract, which is set to expire on July 31. If an agreement is not achieved by this deadline, UHC customers will lose in-network access to UAB Health System services effective August 1. This situation has the potential to affect a substantial number of patients, including those enrolled in both commercial plans and Medicare Advantage plans offered by UnitedHealthcare.

UAB Health System, which includes major institutions such as UAB Hospital, St. Vincent’s Hospital, and UAB-employed physicians at Children’s of Alabama, serves approximately 1.4 million patients, making up more than a quarter of Alabama’s population. The current impasse with UnitedHealthcare has prompted concern from hospital officials regarding the uncertainty it has created for their patients.

Dawn Bulgarella, the CEO of UAB Health System, has expressed disappointment over the situation, highlighting that the organization is dedicated to providing high-quality care and aims to maintain its status as a participating provider within the UHC network. UAB encourages both patients and employers to advocate for the continuation of in-network status by contacting UnitedHealthcare directly.

Contract Details and Financial Concerns

The dispute is primarily rooted in UnitedHealthcare’s claims that UAB is seeking a double-digit price hike for commercial plans, as well as increased rates for Medicare Advantage. UHC asserts that these demands could lead to higher premiums for consumers, thereby raising accessibility concerns.

In addition to concerns raised by UnitedHealthcare, UAB Health System has voiced dissatisfaction with UHC’s business practices. UAB has pointed out issues such as below-market reimbursement rates, excessive claim denials, and delayed payments. These grievances are reflective of a larger pattern of disputes between UHC and various healthcare providers across the country, where similar payment practices have come under scrutiny.

Further complicating matters is the financial context of UnitedHealthcare, which reported annual earnings of $32.4 billion with a profit of $14.4 billion in 2024, raising questions about its negotiation tactics and the impact on healthcare providers. UAB is recognized as one of the most expensive academic health systems in the Southeast, which may influence these ongoing negotiations.

Impact on Other Healthcare Providers

The dispute extends beyond UAB, with other healthcare systems, such as Baptist Health Montgomery, also experiencing contract disputes with UnitedHealthcare. This facility serves approximately 57,000 patients across 17 counties and underscores the widespread nature of the challenges facing providers in negotiations with the insurance giant.

Similarly, Huntsville Hospital Health System previously issued a termination notice to UnitedHealthcare but successfully reached a new agreement, allowing them to remain in-network. This context highlights the negotiation challenges that hospitals face, often under pressure to reach agreements that satisfy both their operational needs and the demands of insurance providers.

Patient Guidance During Negotiations

In light of these negotiations, UAB Health System advises patients to contact the number located on the back of their insurance cards for updated information concerning accepted providers. The organization remains committed to providing high-quality care and hopes to resolve the ongoing negotiations favorably for the benefit of its patients.

As the July 31 deadline approaches, the outcome of these negotiations remains uncertain, potentially impacting patient care and access throughout Alabama.