Major Kentucky Healthcare Provider Told to Try for Agreement with Medicaid Operator

May 2, 2012

A federal judge has ordered Eastern Kentucky’s largest healthcare provider and one of its major Medicaid operators to talk through their issues before appearing in court this week. Appalachian Regional Healthcare filed suit last month against CoventryCares, which is one of four private Medicaid operators in Kentucky. ARH says Coventry was late with reimbursement payments, and has refused to extend its contract past Friday.

Coventry blames the state for failing to set compensation standards for the new privatized Medicaid system.

ARH president Jerry Haynes says if no agreement is reached by Friday, some of the 25,000 Coventry members served in Eastern Kentucky will be affected.

“Patients going forward will have to seek services outside of ARH and of course we are the largest in eastern Kentucky," said Haynes.

Haynes further says if no agreement is reached, ARH will be forced to eventually cut hundreds of hospital positions. He says ARH has proposed two quick fixes: putting Coventry members back into a public Medicaid system, or extending the contract temporarily.