After four contract extensions and months of negotiations, Temple University Physicians (TUP) was forced to declare today that it has reached an impasse in its efforts to secure agreement with Keystone Mercy on equitable reimbursement for treating Medicaid patients. As a result, the contracts between TUP and Keystone Mercy will end effective Aug. 31, 2008.
Based on the expiration of these contracts, TUP can no longer provide primary care, specialty care or hospital outpatient testing at Temple University Health System facilities for patients covered by Keystone Mercy.
TUP is a faculty practice plan of the Temple University School of Medicine, with 325 full-time and 26 part-time physicians. The physicians treat patients, educate medical students and residents, and perform clinical research.
“Temple University Physicians and Temple University Health System provide the primary safety net for uncompensated care in the City of Philadelphia,” said Dr. John M. Daly, dean of the School of Medicine. “We remain dedicated to continuing this long and proud tradition of providing care for all patients regardless of their ability to pay.
“But TUP has sustained significant financial losses in treating these patients because we have not been adequately reimbursed for the care that it provides,” Daly said.
“We must find a way to change the current reimbursement model so that the cost of treating this vulnerable population is shared more fairly by all the parties involved.”
TUP’s annual revenue from Keystone Mercy is $8 million. TUP’s cost of providing services to those covered by Keystone Mercy exceeds $20 million.
The change does not affect patients who have other types of medical insurance coverage.
TUP will continue to see established Keystone Mercy patients who are pregnant or are being treated for chronic conditions. TUP will refer any existing patients with new conditions to Keystone Mercy.
Keystone Mercy patients may also choose to switch their coverage to another provider so they can continue to receive treatment. The change in provider is free. Patients covered by another provider will be treated at usual.
Keystone clients with questions should call their provider.
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