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WILKINSBURG - Discussions are under way between LifeCare Hospitals of Pittsburgh and Highmark for a new contract. A deal between the regions largest insurer and the long-term acute care hospital could be finalized within 30 days.
The Highmark contract was "terminated mutually" in 2001, according to Cliff Orme, CEO of LifeCare. Mr. Orme explained that when LifeCare Management Services, of Plano, Texas, took over the former Forbes Metropolitan Hospital in 1999, the contract already in place with Highmark did not survive the hospital purchase.
Mr. Orme said that LifeCare negotiated another contract with Highmark at a "significantly lower" reimbursement rate. He would not elaborate out of concern that it might stall current negotiations. Mr. Orme noted that when the previous contract ended, Highmark business made up 20 percent of its reimbursement stream.
Highmark spokesman Michael Weinstein called the LifeCare contract history "messy," and also declined to elaborate. He confirmed that contract discussions between Highmark and LifeCare were continuing, but nothing has yet been finalized.
While neither party wanted to...