Temple Health has signed a new two-year contract with the region’s largest insurer for low-income children and families.
Temple Health’s previous two-year contract with insurer Keystone First was set to expire Wednesday. Negotiations for a new contract have been ongoing since March, and Temple warned patients earlier this month that Temple doctors may no longer be included in Keystone First’s network if no agreement is reached.
The new two-year contract agreement announced Friday will ensure Temple Health hospitals and doctors remain in-network for all Keystone First patients, ensuring there will be no disruption to patient care.
Months of contract negotiations
For months, the two sides have been at odds over how much compensation Keystone First will pay Temple University, including supplemental services such as community health workers and behavioral health specialists who provide comprehensive, holistic care to low-income patients with complex medical needs.
Temple University has struggled recently, reporting an operating loss of $23.3 million for the nine months ended March 31. The health system cited financial strains brought on by the pandemic, including rising drug and supply costs.
Losing the contract with Keystone First would have had major implications for Temple Health and its patients. In southeastern Pennsylvania, Keystone First is the largest provider of Medicaid, an insurance plan for people with disabilities and low-income families. The area around Temple University Hospital is one of the poorest in the city, and about 45 percent of the hospital’s patients are covered by Medicaid, also known as medical assistance.
Temple Health President and CEO Michael A. Young said in a statement that the new contract provides the health system with a “minimum of sustainable compensation” given the increasing costs the industry is facing. “Temple Health has a long-standing commitment to serving our communities, especially our most vulnerable residents, and we are committed to providing exceptional health care to our patients,” he said.
Keystone First Market President Joan McFall said the new contract includes a fee increase to Temple Health. “While we believe Temple Health has always been fairly compensated for the care and services they provide, we have agreed to increase the fees we pay to Temple in order to keep our promise to our members,” McFall said in a statement.
