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Keystone Mercy Takes Steps to Ensure Uninterrupted Care for
Members Using Temple University Physicians

Physician Group Terminated Negotiations, Contract Ends August 31

August 4, 2008
Philadelphia, PA – Keystone Mercy Health Plan, the region's largest Medicaid managed care plan, today announced it has begun taking steps to ensure the uninterrupted care of its members in light of the unexpected contract termination announced last week by Temple University Physicians.

Temple University Physicians, a group of approximately 400 full-time and part-time faculty members of the Temple University School of Medicine, has chosen to end negotiations with Keystone Mercy. The existing contract will end on Aug. 31.

Keystone Mercy has started mailing out letters to affected members and health care providers in the region informing them that the contract will not be renewed. The letters also assist members in finding network physicians among the many health systems in the region participating with Keystone Mercy.

"It's unfortunate that we have been unable to reach an agreement," said Rick Buck, vice president of Communications, Keystone Mercy Health Plan. "We've offered fair and competitive rates, but Temple University Physicians has been unwilling to budge from their demands."

In contract negotiations, Temple University Physicians is asking Keystone Mercy to double the rate they are currently paid for services.

"State funding to Medicaid managed care plans already trails the rate of health care inflation," said Buck. "The rate increases that Temple University Physicians is demanding are simply unaffordable. We must do what we think is best to help ensure that our members across the region continue to have access to quality care."

This contract termination does not affect Keystone Mercy's relationship with Temple University Health Systems, which includes all the Temple hospitals and the doctors working for those hospitals. Keystone Mercy's agreement with Temple University Health System has been extended through Nov. 30 while negotiations continue.

Despite the differences, Keystone Mercy does not rule out the possibility of agreeing on a new contract with Temple University Physicians in the future. "If they are prepared to reconsider their rate requests, we are open to a new agreement," said Buck.

About Keystone Mercy Health Plan

Keystone Mercy Health Plan, a health care ministry of the Sisters of Mercy in affiliation with Keystone First, Inc., is the largest Medical Assistance managed care organization in Pennsylvania, serving more than 300,000 Medical Assistance recipients. Keystone Mercy's mission is to help people get care, stay well and build healthy communities. For more information about Keystone Mercy Health Plan, please visit www.keystonemercy.com.

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medicaid managed care, Pennsylvania, Philadelphia, Medicare Coverage, Find a Medicaid Health Insurance Plan, Find a Medicaid Provider, Doctor, Pharmacy, Pharmacist, What is Medicaid, How much does it cost to sign up for Medicaid, What is Medicaid Managed Care, How does Medicaid Managed Care Work?

Medicaid Managed Care Health Insurance, What is Medicaid, How do I sign up for Medicaid?

Medicaid Care, Managed Care or Medicaid, Manager, Manage Management of Care, and how to get health care. hospitals that accept Medicaid Managed Care patients

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Healthcare Providers Pennsylvania, Medicaid Managed Care

Keystone Mercy Takes Steps to Ensure Uninterrupted Care for Members Using Temple University Physicians

Physician Group Terminated Negotiations, Contract Ends August 31

About Keystone Mercy Health Plan

Keystone Mercy Takes Steps to Ensure Uninterrupted Care for
Members Using Temple University Physicians