Pacificare Renegotiates Care Contract With Texas Firm
SANTA ANA — Pacificare Health Systems Inc. has renegotiated a contract to help a Houston company stem contract-related losses that exceeded $10 million in serving Pacificare’s Utah members.
Paracelsus Healthcare Corp. said Friday that under the new terms of the agreement with Pacificare’s Utah unit, it will be paid according to days that patients spend in the hospital instead of accepting a lower, fixed monthly payment for each member.
Pacificare also agreed to reduce the contract to five years from 15, and Paracelsus is no longer Pacificare’s exclusive hospital provider in Utah, the company said.
The renegotiated agreement is designed to halt losses from the contract that mounted to $10.9 million in the first six months of this year, including $2.3 million in interest, the Houston hospital company said.
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