Dallas-based Tenet Healthcare Corp has announced the signing of a two-year contract with health insurance provider Aetna. The agreement gives coverage to members of Aetna and Coventry's commercial and Medicare Advantage health plans at all of Tenet's facilities, including 77 hospitals and 186 outpatient centers. It also includes Tenet Physicians, Inc., the contractor hub for around 1,500 medical practitioners who work for a range of Tenet's satellite companies.
"We value our long-standing relationship with Aetna and Coventry and are very pleased to have expanded our agreement to include all of our hospitals, outpatient centers and employed physicians," said Tenet's chief managed care officer, Clint Hailey. "Providing Aetna and Coventry members with convenient access to high-value, high-quality health care is a high priority. We are proud to be an industry leader in advancing value-based care efforts to improve quality and lower cost, and the completion of this agreement furthers our commitment."
The contract is effective retroactively, coming into play on January 1 2014. It also accommodates Tenet's Integrated Care Network and accountable care organization (ACO) plans in Texas and Arizona, a principle supported by the Affordable Care Act (ACA). The ACO arrangement is a voluntary option for physicians and hospitals to join forces in order to provide a high caliber of medical care to Medicare patients. It's a concerted effort to minimize health-related spending costs, whereby participants determine key cost and performance indicators - such as reducing hospital readmission - and eventually sharing the savings. Tenet is uncharacteristic of ACO providers, as the healthcare group runs a for-profit enterprise, unlike the ACO's typical non-profit participants.
"Aetna is very pleased to reach an agreement that will continue access to Tenet facilities and physicians for our members," said Carl King, the head of Aetna's National Networks and Contracting Services. "This contract brings our Aetna and Coventry members together under one agreement, assuring continued network stability."
Just four days ago, news surfaced of Aetna's renewed relationship with the Kennedy Health System in South Jersey. The network had previously ended its contract with Aetna in February 2013 after finding itself unable to satisfy Aetna's payment terms. The agreement means that over 340,000 Aetna members in the South Jersey area once again have access to Kennedy's services. "We work to balance the demand for broad access to in-network care, with the need for our network to deliver high-quality, affordable services," said Susan Millerick, spokeswoman for Aetna.
