2020-02-20 10:21:49 | Mednax sinks 20% after UnitedHealth unilaterally terminates contractsMednax earlier today said it has received notification by entities affiliated with UnitedHealth Group (UNH) that contracts of the company's affiliated practices across four states, covering all of the services that Mednax affiliated physicians provide in those states, have been unilaterally terminated, with effective dates ranging from March 1 to September 1, 2020. The total annual historical revenue under these contracts represents approximately 2% of Mednax's consolidated annual 2019 revenue of $3.5B. The company commented, "Given the unprecedented nature of these actions, Mednax cannot estimate the impact of these surprise terminations, which eliminate from United's networks Mednax-affiliated physicians providing anesthesia coverage, neonatology, and high-risk obstetrics in urban and rural areas." Chief Executive Officer Roger Medel added, "We are disappointed that United would take such action to unilaterally terminate our affiliated practices from its networks, across multiple states and affecting access by its members to many critical healthcare services. It has always been our practice to minimize exposure to out-of-network bills for our patients, and to negotiate in good faith with our commercial payors to achieve that goal. It is our hope that we can achieve an outcome in this matter that is acceptable to all parties, including the patients receiving critical healthcare services." Shares of Mednax are down 20%, or $5.20 to $21.39 in morning trading. | |
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