Hutcheson Medical Center officials are spreading the word that the hospital has reached a contract agreement with United Healthcare after negotiations ground to a halt last year.
"We reached a middle ground," said Charles Stewart, Hutcheson president and CEO. "It was a very difficult negotiation."
Hutcheson Medical Center officials chose not to renew their contract with United Healthcare last summer because of what they said were inadequate reimbursement rates.
Hutcheson financial officers had complained that United's payments were significantly lower than other insurers' reimbursements, and that even public programs such as Medicaid paid more.
In December, the hospital and insurer finally reached an agreement for a two-year contract. Until then, some North Georgia residents had dealt with months of uncertainty about whether their insurance would be accepted at their local hospital. If not, they'd have to pay expensive out-of-network costs to get treatment there.
"It created some anxiousness, that's for certain," said Craig Davoulas, director of personnel for Walker County Schools.
United spokesman Roger Rollman wrote in an e-mail statement: "Clearly we are pleased to have a new multiyear contract with Hutcheson, and that our members will again have in-network access to its services."
Most of Hutcheson's United patients are state employees, primarily public school teachers, who get their health insurance through the state health benefit plan. State employees could choose either United or Cigna Healthcare.
"I'm glad that they've re-entered the network that's convenient for the personnel here in Walker County and gives them another option," Mr. Davoulas said. "We were hopeful that would take place."
The new insurance contract went into effect Jan. 1, Mr. Stewart said. The hospital has been running ads in local newspapers to get the word out to patients, he said.
Mr. Stewart said it's more common now for a hospital to threaten to terminate, or in Hutcheson's case actually terminate, a contract with an insurer because it sometimes can be the only way to get the insurer into negotiations.
"It's unfortunate sometimes that it gets to that point," he said. "We don't want to gouge insurance companies or our patients. But we have to have adequate funds to cover our costs and make the investments into our equipment and facilities."