Temple Health and Keystone First reach new 2-year deal, avoiding disruption for thousands of patients

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Temple Health in Philadelphia and health insurer Keystone First have reached a new contract deal, avoiding what would have been a major disruption in care for thousands of patients.

A new two-year deal means that all Temple Health hospitals and physicians will remain in-network for people with Keystone First health insurance, which is the largest Medicaid provider in Southeastern Pennsylvania.

The agreement includes higher insurance reimbursements for delivered health care services, “which takes into account the significant cost increases that all health care providers bear for providing the high-quality care and comprehensive services that patients and communities expect and deserve,” Michael Young, Temple Health CEO and president, said in a statement.

The two parties reached an agreement less than a week before their current contract was set to expire after July 31.

After months of negotiations and no deal, Temple Health began notifying patients several weeks ago that their care might no longer be covered if the health system did not agree to a new contract with Keystone by the summer deadline.

Keystone First officials said in a statement that they are “pleased that Temple Health will remain in our robust network of providers.”