American Renal Associates and UnitedHealthcare Reach Settlement
July 09 2018 - 4:15PM
Business Wire
American Renal Associates Holdings, Inc. (NYSE: ARA) and
UnitedHealthcare, a UnitedHealth Group company (NYSE: UNH) today
announced that they have executed a binding Settlement Term Sheet
(the “Agreement”) and will be negotiating terms of a definitive
settlement by August 1, 2018. Under the terms of the Agreement, ARA
will pay $32 million and will follow certain procedures and share
information with UnitedHealthcare. In conjunction with the
Agreement, ARA and UnitedHealthcare will enter into a three-year
network agreement, effective August 1, 2018, that will provide
UnitedHealthcare plan participants with more cost effective,
in-network access to all of ARA’s dialysis clinics in 26 states and
the District of Columbia. The network agreement will include
UnitedHealthcare’s health benefit products across the commercial,
Medicare Advantage and Medicaid managed care markets, and will
allow chronically-ill end-stage renal disease (ESRD) patients to
better coordinate their access to care with ARA’s clinics and
ARA-affiliated nephrologist partners who are part of the
UnitedHealthcare network. The network agreement will also include
certain value-based contracting features designed to improve
quality and lower hospitalization costs for UnitedHealthcare plan
participants who receive kidney care at ARA clinics.
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In a joint statement, the companies said, “We are pleased to
have reached a resolution on this matter and we look forward to
building a more cooperative relationship that enables us to
collaborate on high quality care for dialysis patients.”
The settlement agreement releases all claims asserted against
ARA and the other named defendants in the Florida and Massachusetts
actions without ARA admitting any liability or wrongdoing. The
Agreement also releases all claims arising from actions brought in
Florida or Massachusetts that were asserted against ARA or against
the nephrologists or other healthcare providers who have entered
into joint venture arrangements or medical directorships with ARA
without any admission of liability or wrongdoing. UnitedHealthcare
intends to share funds secured under the settlement with its
self-funded customers.
Details regarding the Agreement and other information can be
found in ARA’s Form 8-K filed with the Securities and Exchange
Commission today.
About American Renal
Associates
American Renal Associates (“ARA”) is a leading provider of
outpatient dialysis services in the United States. As of March 31,
2018, ARA operated 228 dialysis clinic locations in 26 states and
the District of Columbia serving approximately 15,700 patients with
end stage renal disease. ARA operates principally through a
physician partnership model, in which it partners with
approximately 400 local nephrologists to develop, own and operate
dialysis clinics. ARA’s Core Values emphasize taking good care of
patients, providing physicians with clinical autonomy and
operational support, hiring and retaining the best possible staff
and providing best practices management services. For more
information about American Renal Associates, visit
www.americanrenal.com.
About UnitedHealthcare
UnitedHealthcare is dedicated to helping people live healthier
lives and making the health system work better for everyone by
simplifying the health care experience, meeting consumer health and
wellness needs, and sustaining trusted relationships with care
providers. In the United States, UnitedHealthcare offers the full
spectrum of health benefit programs for individuals, employers, and
Medicare and Medicaid beneficiaries, and contracts directly with
more than 1.2 million physicians and care professionals, and 6,500
hospitals and other care facilities nationwide. The company also
provides health benefits and delivers care to people through owned
and operated health care facilities in South America.
UnitedHealthcare is one of the businesses of UnitedHealth Group
(NYSE: UNH), a diversified health care company. For more
information, visit UnitedHealthcare at www.uhc.com or
follow @UHC on Twitter.
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version on businesswire.com: https://www.businesswire.com/news/home/20180709005815/en/
American Renal Associates Holdings, Inc.:Darren Lehrich,
978-522-6063dlehrich@americanrenal.comorUnitedHealthcare:Matthew
Wiggin, 860-702-6142matthew_n_wiggin@uhc.com
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