Monday, July 14, 2014

Tenet Healthcare (THC), Humana (HUM) Enter New Multi-Year Contract

Tenet Healthcare Corporation (NYSETHC) and Humana Inc. (NYSE: HUM have signed a new multi-year contract extension that provides Humana members with traditional commercial plans continued in-network access to Tenet’s 79 hospitals, 193 outpatient centers and more than 1,800 employed physicians. In addition, for the first time, patients enrolled in Humana’s healthcare Exchange plans in Atlanta, Birmingham, Houston, Memphis and San Antonio will have access to Tenet hospitals, related facilities and employed and affiliated physicians. Humana Exchange members in Chicago, Detroit and Phoenix continue to have access.
Humana also has an existing agreement with Tenet that provides its Medicare Advantage members with in-network access to Tenet facilities.
“We are pleased that this agreement provides Humana members access to Tenet’s entire network of quality healthcare services,” said Clint Hailey, chief managed care officer at Tenet. “This new agreement also greatly enhances our participation in Humana’s new Health Exchange products.”
The agreement also includes an accountable care organization (ACO) arrangement for Humana’s Medicare Advantage members in Atlanta. The ACO is a collaboration between Tenet and Humana that is aimed at enhancing care coordination and includes incentive payments for achieving key evidence-based quality metrics.
“We are pleased Tenet will continue as part of our existing national product networks and that we’re able to add our Exchange networks in so many major markets and build the accountable care relationship as well,” said Paul Davis, vice president of national contracting for Humana. “We are committed to providing our members with more choices for better healthcare, and this expanded agreement does just that.”
Tenet currently has 12 ACOs, covering more than 330,000 lives in nine states. Humana has a 25-year accountable care relationship history with more than one million members that are cared for by 33,000 primary care physicians in more than 900 accountable care relationships across 40 states and Puerto Rico.