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A spokeswoman for Hackensack Meridian Health, New Jersey's largest not for profit healthcare organization, said they were unable to reach an agreement despite "lengthy negotiations."
"We have been and remain committed to reaching an agreement but must receive fair care reimbursements from Horizon to continue to invest in the care, medical technology, and locations that the local communities we serve rely on and expect," Jessica Cohen Nussman, public relations manager for Hackensack Meridian Health said.
"Horizon's proposal includes inadequate reimbursement rates and demands significant changes to previously agreed-upon contract terms. HMH remains committed to working with Horizon to reach a mutually beneficial agreement prioritizing high-quality patient care and access."
Thomas Wilson, a spokesman for Horizon, said Hackensack wanted them to agree to significant price increases.
"High prices at hospitals directly increase out-of-pocket costs and insurance premiums and make health care less affordable," Wilson said. "Over the past five years, HMH’s prices have increased by more than the rate of inflation and HMH is already among the most expensive hospital systems in New Jersey. Horizon is offering a fair and reasonable price increase, but HMH is demanding an increase that is much higher than the rate of inflation."
Hackensack Meridian Health physician groups like primary care and specialty physician practices are not included in the termination and remain in-network, Wilson said. The decision to terminate also does not affect members covered by a Braven Health, Medicaid or Medicare policy, Wilson said.
Wilson said the two sides will continue to meet regularly and are optimistic they can reach a new agreement before June 1.
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