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Contract negotiations put thousands of Phoenix children's healthcare at risk

Posted at 6:25 PM, May 24, 2023
and last updated 2023-05-30 23:13:58-04

PHOENIX — Thousands of Phoenix children have healthcare at risk if contract negotiations fail between United Healthcare and Phoenix Children’s.

Phoenix Children’s has warned patients with a memo that the current agreement with United Healthcare is set to expire on May 31. This would mean that around 17,000 children could lose their in-network coverage at the hospital.

The move is extremely concerning for Capri Laughlin, whose son has been part of what she considers the Phoenix Children’s family for more than a decade.

Her son had brain surgery last February at Phoenix Children’s and they rely on their routine care and physical therapy at Phoenix Children’s.

“I'm a single parent,” said Laughlin, “I don't even know, it's not even like I can switch insurances either. I don't have the option."

Phoenix Children’s has posted a memo on their website which says that if patients are currently in treatment, they should submit a continuity of care request.

“For patients currently in treatment, you may be eligible to receive in-network continuity of care benefits, but you must complete a continuity of care request form to qualify. Please contact United Healthcare today for further information on submitting a continuity of care request,” the website reads.

According to United Healthcare, if the two can not reach an agreement then Phoenix Children’s hospital, Phoenix Children’s Medical Ground, and Phoenix Children’s Medical Group Urgent Care will be out of network for its members effective June 1.

In a statement, United Healthcare said in part, “Phoenix Children’s is 34% higher cost than the median rate of other children’s hospitals in the western U.S., yet it is demanding a 30% price hike over the next three years.”

Phoenix Children’s said in part: "Given the ever-increasing costs of providing the high-quality care patient families rely on, Phoenix Children’s can’t afford to allow insurance companies to pay below the contracted rates by routinely denying services. We cannot enter into an agreement that weakens our ability to serve our patients and families today as we build the network of care our growing community will need in the future.”