PacificCare's pact with UMC on the line

The County Commission, acting as the University Medical Center board of trustees, will decide on Tuesday whether to terminate the hospital's contract with PacifiCare of Nevada.

William Hale, chief executive officer of UMC, has given the health maintenance organization until Jan. 25 to resolve disputes with the hospital over its 10 Quick Care Centers or the hospital will end its contract with the HMO on Feb. 4.

PacifiCare terminated its agreement with UMC's Quick Care Centers earlier this month, affecting 7,500 customers.

Hale said when PacifiCare canceled its contract with the Quick Care Centers it constituted a breach of contract with the hospital. The HMO gave the hospital only 48 days' notice of the cancellation, rather than the required 90 days, Hale told PacifiCare in a Jan. 4 letter to Rick Beavin, its network manager.

"Contract terminations are legal matters, and as such, it would be inappropriate to talk about them," Kayla Callas, PacificCare public affairs director, said in a written statement. "Both UMC and PacifiCare are working through their attorneys on this matter."

Hale said UMC has not received accurate payments for claims from PacifiCare since 1995. According to hospital records, PacifiCare owes UMC $1,051,024 as of June 30.

"Both parties are well aware of the issues between them," Callas said. "UMC and PacifiCare have invested a considerable amount of time working on a reconciliation, so this is not news. It should be resolved soon."

Hale met with David Kinard, president of the Nevada region of PacifiCare, last week, but he said they failed to reach an agreement.

"He just apologized," Hale said Friday. "I think they need us more than we need them. We are getting a lot of business from paying patients, more than what PacifiCare will bring in."

Hale said UMC has already been replacing the patient load brought in by PacifiCare. From July to November 1998, Hale said UMC admitted 1,040 patients other than PacifiCare patients. In fiscal year 1997-98, Hale said the hospital only saw 1,093 PacifiCare patients.

"If this trend continues, we will be up to 2,000 patients soon," hesaid.

archive