Photo: Getty Images
The Albany Med Health System and CDPHP are in the final stages of negotiating a new contract, with the current agreement set to expire tomorrow (December 31). Both parties have agreed to a state-mandated cooling-off period that will last until February 28, allowing them more time to reach an agreement without disrupting patient care. During this period, Albany Med will continue to accept CDPHP insurance.
The negotiations have been complicated by financial challenges related to the Medicare wage index, which has left CDPHP facing significant financial losses. According to CDPHP, the Medicare wage index granted hospitals in Upstate New York a $1 billion windfall, but did not adjust private Medicare Advantage premiums, resulting in nearly $145 million in losses for CDPHP over the next two years.
Despite these challenges, CDPHP remains committed to reaching a fair and equitable agreement with Albany Med to avoid any disruption in care for its members. CDPHP President and CEO Brian O’Grady expressed disappointment over Albany Med's decision to take the negotiations public, stating it unnecessarily alarmed patients.
If no agreement is reached by the end of the cooling-off period, services at Albany Med could become out-of-network for thousands of patients. However, those in ongoing care will have an additional 30 days to continue receiving treatment at Albany Med facilities.