Erlanger tileAfter late-night negotiations failed, Erlanger Health System and insurer UnitedHealthcare have decided to extend the deadline to for resolving disputes over a contract that expired today.
The dispute centers on United's TennCare plan, called Americhoice, which affects mothers and children in the plan who are treated at Erlanger. The hospital has argued that the rates United is offering to pay are too low.
Erlanger officials have said that if they can't reach agreement with United over the Americhoice plan, they would sever ties all of United's networks - including commercial insurance, Medicare and Medicaid.
If that happens, it could affect thousands in the Chattanooga region as of Jan. 1.
But Craig Becker, president of the Tennessee Hospital Association, said it was not uncommon for such negotiations to go to the brink like this.
"I've seen these things go down to the wire and even past the wire," Becker said. "The truth is that United and Erlanger need each other in this market."
The negotiations extended past midnight Tuesday, but both parties agreed to come back to the table for the rest of the week.
Erlanger CEO Kevin Spiegel said the hospital will continue to treat United TennCare patients as if they are in network until Sunday.
United spokesman Daryl Richard said that "we are certainly hopeful a deal will get done, but most importantly our UnitedHealthcare members still have access to Erlanger Health System."
For more information, read Thursday's Times Free Press.