For Immediate Release – July 25, 2008

KANSAS CITY, Mo.– Saint Luke’s Health System is moving forward with plans to terminate its provider network contract with United Healthcare (UHC) effective Feb. 28, 2009.  The health system issued its official notice of termination to UHC on July 25 and to its patients and the business community today.

The health system notified UHC and the business community of its intentions in January 2008. The one-year notice was provided in order to help brokers, benefits consultants, and affected employers best serve their clients and employees.

“Though we have made every attempt to maintain network continuity for our patients and providers, we were unable to reach an equitable contract agreement with UHC,” said
G. Richard Hastings, president and CEO of Saint Luke’s Health System. “By working with the business community far in advance, we’re hoping to give employers time to make alternative arrangements for a health plan that includes Saint Luke’s and not be caught mid-cycle without the established doctors and hospitals they want in their network.

read complete press release

Question and Answer Fact Sheet

July 25, 2008

Q: Saint Luke’s Health System sent termination notice to United Healthcare and will become an out-of-network provider March 1, 2009. Why?

A: Saint Luke’s commitment to caring for the communities we serve is one we’ve taken seriously for 126 years. Our mission is based on providing cost-effective, quality care to the communities we serve. At this time, Saint Luke’s Health System is unable to cover the cost of providing this care to United Healthcare enrollees. Our current contract and current reimbursement rates are unacceptable. Over a year ago, Saint Luke’s Health System provided United Healthcare a rate proposal consistent with other payers according to network, product makeup, and volume to Saint Luke’s Health System.

Recent indications show United Healthcare is unwilling to work toward an equitable future contract. Meanwhile they are posting significant corporate earnings. If Saint Luke’s had chosen to continue its relationship with United Healthcare without a substantial rate increase and equitable contract terms, our entities would have been forced to reduce their level of service. Saint Luke’s could not consider this. Patients deserve full service, high-quality care—the only kind of care Saint Luke’s Health System strives to provide. Therefore, Saint Luke’s Health System sent termination notice to United Healthcare today. All Saint Luke’s entities and all Saint Luke’s employed physicians will become out-of-network providers to United Healthcare enrollees beginning March 1, 2009.

The 2009 termination will include UHC’s commercial HMO, Point of Service, and PPO networks. Saint Luke’s will continue to be a provider for UHC’s Medicare Supplement plan, which includes the AARP Medicare tie-in plan.

Q: What immediate impact does this announcement have on patients?

A: This termination does not immediately impact patients with United Healthcare insurance plans. Patients may continue to receive care in- network through Saint Luke’s Health System contracted physicians and hospitals through February 28, 2009. Beginning
March 1, 2009 United Health care enrollees will be provided high quality care at Saint Luke’s Health System hospitals and by Saint Luke’s employed physicians but care will be provided out-of-network.

read complete Q & A Fact Sheet
print PDF of Q & A Fact Sheet

Letter to United Healthcare

Dear Bill:

This is to officially notify you that Saint Luke’s Health System is terminating, without cause, the contract between United Healthcare and Saint Luke’s Health System dated January 1, 2005 in accordance with paragraph 8.2ii effective the end of the day on February 28, 2009.

In addition we are terminating all of our employed and contracted physician contracts effective the same date. We have attached a list of those 289 employed and contracted physicians.

read complete letter