Hazelden signs health plan contracts
The agreements with
The change comes as Hazelden said the traditional 28-day inpatient stay for both insured and self-pay patients is shifting to a more individualized model that often features a shorter inpatient stay followed by several weeks of outpatient treatment.
"Even though we're getting less payment for residential ... our patients are actually staying with us much longer," said
In 2014,
Mishek said much of the revenue impact from the switch to in-network payments from health insurers is now complete. Financial results in the first quarter improved compared with the previous year, he said, and April results were strong, as well.
During the first quarter, Hazelden posted
"Our board made that decision five years ago, six years ago ... that if we're going to serve more people, we've got to become mainstream health care -- we've got to get in insurance, we've got to be in-network," Mishek said. "We're there now."
UnitedHealthcare previously had contracts with Hazelden in
"Our new network agreement with
In its first-quarter financial statement, Hazelden said it also expects to execute a contract this year with Tricare, the large government health care program for uniformed service members, retirees and their families.
"As we continue to contract with such other major insurers on a national basis, management expects a further shift in the mix of payer sources in favor of managed care," Hazelden said in the financial statement. "However, we also expect the aggregate revenue impact from incremental volume to more than offset any reduction in revenue realization caused by the payer source shift."
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