MINNEAPOLIS (FOX 9) – Two of Minnesota’s largest healthcare providers claim they have received few answers about how debts will be settled and care will be provided as UCare winds down operations.
UCare under state control as it shuts down after 40 years
What we know:
Fairview and Allina claim they are owed more than $170 million for previous medical services provided to UCare members, according to recent court filings.
In December, Fairview revealed it is owed $100 million. Allina now claims it is owed another $70 million.
The healthcare providers are petitioning to intervene in the ongoing court case brought by the Minnesota Department of Health (MDH).
The petition for receivership will allow the state to take control of the company as it winds down operations.
UCare and state offering ‘scant details’
The backstory:
After reporting record losses of more than $500 million, UCare announced it would be shutting down and transitioning members to Medica.
“Scant details have been provided about the proposed Medica Transaction,” Allina argued in a court filing late last month.
What they’re saying:
Allina and Fairview say they have been seeking answers since last summer after learning about UCare’s hazardous financial system.
“This issue is of significant concern to both organizations, as the dissolution (of UCare) potentially will impact patient continuity of care, delay millions of dollars in pending claims owed to providers and further destabilize an already fragile healthcare environment.
The healthcare provider met with UCare officials and state regulators at the Minnesota Department of Health and the Department of Commerce again in December but “critical questions remain unanswered.”
The Minnesota Department of Commerce sent FOX 9 the following statement regarding the legal filings:
“MDH and Commerce are committed to working closely with all organizations and partners through this transition. The state cannot provide details regarding how much and when providers will be paid at this time as those payments are subject to a statutory process for review that involves court approval.”
What we don’t know:
The most pressing question for healthcare providers: who is going to pay them?
“What protective measures will ensure that Allina and similarly situated healthcare providers will be fairly and equitably compensated for their services, both already provided and in the future?” Allina asked in the court filing.
Allina and Fairview are still seeking clarification on whether the $400-million UCare has in reserves funds will be used to pay down its debts.
“It is expected that UCare can and will pay all creditors in full over time?” the providers asked state regulators.
The providers are also seeking more detail as to when UCare will be officially dissolved and liquidated.