News Summary
UnitedHealthcare and UAB Health System are at an impasse regarding contract negotiations, potentially disrupting access to healthcare for over 500,000 insured Alabamians. The negotiations may have significant implications for numerous facilities within the UAB network, leading to concerns about patient care continuity. Both entities have expressed their positions on the matter, and the urgency for resolution has been emphasized as the July deadline approaches. As discussions continue, stakeholders are encouraged to stay informed about their healthcare access options.
Birmingham, Alabama – UnitedHealthcare and UAB Health System Contract Negotiations at an Impasse, Potential Disruptions for Patients by August 2025
Patients insured by UnitedHealthcare in Alabama may face significant disruptions when accessing services at UAB Health System entities, including UAB Hospital and Baptist Health Montgomery, if current contract negotiations do not reach a resolution before the July 31, 2025 expiration date. This issue affects a wide range of health plans, notably both commercial plans and Medicare Advantage plans.
The impending expiration of contracts impacts several UAB facilities, such as The Kirklin Clinic of UAB Hospital, UAB Medicine clinics, and UAB St. Vincent’s facilities. Patients obtaining care from UAB-employed physicians, including those at Children’s of Alabama, will also be affected regardless of the service location. As a result, United members can access these medical entities without interruption until the contract expiration date, but must prepare for potential out-of-pocket expenses if an agreement is not reached by August 1, 2025.
UnitedHealthcare offers some patients the possibility of continued care under continuity of care terms specified in their plans. The situation has prompted UAB Health System’s CEO to express disappointment over the stalled negotiations and emphasize their commitment to resolving the matter amicably. UAB encourages patients and employers to engage with UnitedHealthcare to stress the necessity of keeping UAB entities within their network for continued patient access.
Financial Concerns and Healthcare Access
The stakes in these negotiations are high, highlighting the financial pressures faced by healthcare providers. UnitedHealthcare recently reported $14.4 billion in earnings for 2024 and registered over $6 billion in profit in the first quarter of 2025. UAB Health System claims that United’s profitability comes at the expense of both policyholders and healthcare providers. UAB serves roughly 1.4 million patients statewide and has voiced concerns that United’s demands for rate reductions could impair their capacity to care for the sickest patients, possibly leading to hospital closures.
There are over 500,000 Alabamians covered by UnitedHealthcare, illustrating the potential wide-ranging impact of this impasse on local healthcare access. UAB has indicated that it currently provides more than $100 million annually in uncompensated care, which underscores its role as a critical safety net provider in the region.
Past Contract Disputes
This negotiation is not the first hiccup between UAB and UnitedHealthcare. Previous contract disputes, including a breakdown in negotiations in 2019, were ultimately resolved before reaching expiration. Both healthcare entities have created dedicated websites to present their perspectives regarding the ongoing negotiations. UnitedHealthcare has labeled UAB as one of the most expensive health systems in the area and is demanding price hikes for commercial and Medicare Advantage plans.
UAB refutes United’s assertions, maintaining that they initiated negotiations nearly a year prior but were only recently met with response from United. Despite United’s proposal for a 60-day contract extension to facilitate continued in-network access, UAB declined this proposal, indicating its commitment to addressing broader systemic issues rather than temporary fixes. UAB has raised issues surrounding delayed payments from United, which they argue contribute to escalating healthcare costs.
Wider Implications
Similar contractual negotiations have seen challenges across the country, affecting various healthcare systems, including those located in North Alabama and North Carolina. The negotiations between UAB and UnitedHealthcare will not only affect patient access to necessary healthcare services but may also set a precedent influencing future dealings between healthcare providers and insurance companies. As the July deadline approaches, stakeholders are encouraged to remain informed and proactive in advocating for their healthcare accessibility.
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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.
