Tucson Physicians Demand Urgent Truce Between Northwest and UnitedHealthcare Ahead of Deadline

Southern Arizona’s largest physician group has urged Northwest Healthcare and UnitedHealthcare to negotiate a resolution that prioritizes patient care. Pima County Medical Society President Dr. Susan Kolata emphasized the urgency by questioning where patients would be forced to go for treatment if no agreement is reached.

The deadline for contract negotiations looms on Monday, yet as of Friday, discussions remained unresolved. This ongoing stalemate threatens to prevent thousands of Tucson-area residents with UnitedHealthcare from accessing Northwest Healthcare facilities, including critical services at Oro Valley Hospital and Northwest Medical Center, unless emergencies arise.

UnitedHealthcare has reiterated its commitment to achieving a fair agreement. According to a prepared statement, they aim to ensure continued access to essential services provided by Northwest Healthcare. UnitedHealthcare’s Arizona Health Plan CEO, Dave Allazetta, met with Northwest CEO Kevin Stockton to propose terms, yet no consensus has emerged.

If the contract expires, numerous UnitedHealthcare plans—including Medicaid and Medicare Advantage—will be impacted, although MediGap plans remain safe. In light of potential disruptions, UnitedHealthcare officials have suggested a transition-of-care plan for affected patients, with continuation of care benefits available for those undergoing ongoing treatments.

Dr. Kolata called for both parties to focus on patient needs rather than personal disagreements, warning that failure to do so would be “unthinkable.” She highlighted the importance of long-standing doctor-patient relationships that extend beyond mere clinical interactions.

Dr. Tim Fagan, a board member of the Pima County Medical Society, acknowledged the critical nature of this dispute. He cited statistics suggesting that up to 40% of patients using Northwest Medical Center and Oro Valley Hospital are UnitedHealthcare recipients. The ongoing contract debate could exacerbate an already strained healthcare environment, forcing patients to wait significantly longer to secure new primary-care doctors.

Health strategist Nathan S. Kaufman, who has decades of experience in managed-care contract negotiations, noted that these disputes often reach resolution at the last moment, depending on the leverage both parties hold. He emphasized that geographically indispensable providers tend to achieve more favorable contract terms.

The dispute mirrors a prior one between BlueCross BlueShield of Arizona and the Southern Arizona Carondelet Health Network in late 2015, though this negotiation is more critical, occurring mid-year and limiting patients’ options to switch insurance plans.

However, the core issues remain contentious. Northwest Healthcare alleges that UnitedHealthcare is insisting on a 25% reimbursement cut, while UnitedHealthcare claims Northwest seeks a 27% increase over three years. Additionally, UnitedHealthcare argues that Northwest is resisting a “value-based” reimbursement model, which has been accepted by other local hospitals.

As this situation develops, public sentiment may play a decisive role. Both negotiating entities have engaged in public communication, raising awareness among patients who might influence the outcome based on their experiences and preferences.

For ongoing updates, contact health reporter Stephanie Innes at 573-4134 or email sinnes@tucson.com.