Jefferson Health’s CEO said the network is waiting for UnitedHealthCare to make the next move in stalled contract negotiations with Lehigh Valley Health Network.
Thousands of LVHN patients with UnitedHealthCare Medicare Advantage and commercial health insurance are now out of network with LVHN, after negotiations on a new contract failed.
Dr. Joseph Cacchione shared some more information about what is going with the UnitedHealthCare negotiations during a visit Monday to the Lehigh Valley to be a guest on WFMZ TV’s Business Matters Special Edition with Greater Lehigh Valley Chamber of Commerce President and CEO Tony Iannelli.
UnitedHealthcare has contended that LVHN already has some of the highest-paid hospitals in the state, and that a proposal LVHN made would amount to 20% price hike. However, Cacchione said that LVHN made a new proposal as recently as three weeks ago, and the ball is back in UHC’s court.
“It’s hard to even conceptualize how United could think of saying anything — after posting record profits for this past quarter — about anybody being greedy,” Cacchione said. “It’s really kind of laughable that they say Lehigh is being greedy.”
UnitedHealthCare reported $111.7 billion in consolidated revenues for the first quarter of 2026. Cacchione said while he understands United has a duty to its shareholders, Jefferson has a duty to the communities it serves.
He said Jefferson and LVHN’s biggest sticking point throughout this process is that United has not paid what is owed to them under the previous contract.
“We had a contract with United, an existing rate fee schedule. United came to us and said, ‘If we create a new product for a new business only, can we have a little bit lower of a rate?’ And we said, ‘Sure, on new business only.’ They then applied that rate to all the existing business for the whole valley. And over the past four years, that’s totaled up to almost $150 million dollars that they have underpaid Lehigh Valley, predating Jefferson.”
The contract dispute only affects legacy LVHN hospitals and health care providers. Jefferson hospitals and providers remain in network.
Cacchione said that LVHN, Jefferson and an independent arbitrator have all requested the data on how UHC determined what was new business and what was old business, and they have refused to provide it.
“I think they’re trying to wait us out because they have billions,” Cacchione said.