A major south Alabama health care system warns that patients insured through UnitedHealthcare could be a month away from losing in-network coverage.
USA Health, a multi-hospital system affiliated with the University of South Alabama, said Wednesday that contract negotiations between USA Health Providence Hospital and UnitedHealthcare are approaching a Nov. 14 deadline.
The warning does not apply to USA Health University Hospital and USA Health Children’s & Women’s Hospital. Providence Hospital in west Mobile originally was a Catholic institution that later was part of the Ascension healthcare network. USA Health took over Providence in October 2023.
“For many months, USA Health has worked to reach a fair agreement with UnitedHealthcare so that patients can continue accessing care without disruption,” said the USA Health statement. “Unfortunately, despite USA Health’s best efforts, an agreement has not been reached.
“Patients with UnitedHealthcare insurance will continue to have in-network coverage for Providence Hospital services through Nov. 14,” continued the statement. “If an agreement is not reached, UnitedHealthcare members who seek care at Providence Hospital will be responsible for paying out-of-network costs starting Nov. 15.” The statement said this would apply to both employer-sponsored commercial plans and Medicare Advantage plans.
A request for comment from UnitedHealthcare was pending as this story was published.
USA Health’s statement suggested that potentially affected patients could use a current open enrollment period to change their coverage; changes would take effect Jan. 1, it said.
“Our goal has always been to remain in network and for our patients to be able to see the providers they know and trust at USA Health Providence Hospital without interruption,” said Natalie Fox, DNP, PNP-BC, interim CEO of USA Health. “Unfortunately, UnitedHealthcare’s approach to contract negotiations has so far made this effort unsuccessful, as it has in other markets. We are very saddened by the uncertainty this creates for our patients and UnitedHealthcare customers.”
In October 2024, Huntsville Hospital Health System announced that it had sent a notice of termination to the insurer after “several months of disappointing negotiations;” a month later, just before the termination actually took effect, a new agreement was announced. Birmingham-based UAB Health System had a similar dispute in June but struck a tentative deal as the deadline loomed at the end of July and announced a new multi-year agreement in August. Mobile-based Infirmary Health System previously went through a similar process in summer 2024.
USA Health directed patrons affected by the potential change to an information page at www.usahealthsystem.com/united.
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