Even when companies have had long-standing relationships, the process of renewing a contract is not always smooth. This can be the case for many reasons. One party may wish to change terms in a way that is not acceptable to the other. It may also be that issues that had been simmering for some time grow during the contract renewal process.
Two companies that operate in Nevada are currently involved in a challenge while trying to negotiate a renewal of their existing contract. The issue is between Health Services Coalition and Hospital Corporation of America. The former, HSC, is a health plan provider for approximately 20 organizations in Nevada. The latter, HCA, runs a total of seven health care facilities throughout the state. Of these facilities, four are surgical centers and three are hospitals. The contract that has been in place expires at the end of February 2016.
Reports indicate that a new contract lasting three or even four years was being sought. Challenges are arising relating in part to costs. HCA wants to charge more for some services and HSC is resisting that. In addition, HSC is making allegation that HCA has not properly handled some of the money that Nevada patients have paid them. HCA, which is based in Tennessee, denies these claims. The outcome of this dispute will be remains to be seen.
Companies wanting to make sure their interests are properly addressed may wish to speak with an attorney before and during important contract negotiations and renewals.
Source: Becker’s Hospital Review, “HCA, Nevada coalition at odds over contract negotiation,” Erin Marshall, February 15, 2016