In a written statement, Temple Health said the health system has incurred “tremendous increases in supply costs, labor costs and drug prices” in recent years, including during the COVID-19 pandemic.
Because of that, health officials say they want AmeriHealth Caritas and Keystone First to reimburse at higher rates and match the growing costs.
A spokesperson for AmeriHealth Caritas said higher payment rates are already on the table.
“Although we believe the system is paid fairly for the services it provides our members, in support of our good faith negotiations, we proposed a rate increase in the new contract,” officials said in a statement.
However, Temple Health has not accepted these proposals as “fair and sustainable” options.
“The significantly higher costs of providing the high-quality services and care that our patients and community expect and deserve has made it infeasible to operate under the old models,” Temple Health officials said.
AmeriHealth Caritas officials said they hope to come to an agreement with the health system by the end of the month in order to avoid an upheaval for patients and their families. In a statement, they added that, “it is unfortunate Temple has chosen to escalate our negotiations in this way.”
