The Law Office of Lynnette Ariathurai A Professional Corporation

Contract dispute leads to problems between provider and insurer

Being able to amicably negotiate in business is a desired skill many in California and beyond do not possess. Lacking such skill can lead to tension between business partners and may result in a contract dispute if all parties are not able to civilly discuss matters. In fact, a contentious situation has developed in this state between a health care provider and an insurer.

The two companies, Tenet and Humana, have decided to cut ties with one another since they have been unable to reach an agreement regarding their contract dispute. A Humana spokesperson stated that the company wishes to continue negotiating a new contract, but Tenet has refused to cooperate by accepting terms that are viewed as reasonable and fair for all plan members and clients. At the beginning of October 2016, Tenet's health care establishments and employed physicians were taken off Humana's network lists.

Tenet says Humana's refusal to reach a fair agreement has adversely affected many members. In particular, military service members and seniors will no longer be able to have in-network access to their preferred facilities and trusted doctors. Tenet also said that Humana's most recent contract offers were actually worse than previous ones they already refused to accept, making matters worse.

Any business dispute that remains unresolved in California may have both immediate and long-lasting negative impacts on business owners, workers and communities. For this, and many other reasons, it is advisable to address such issues in as swift and economically feasible a fashion as possible. In past situations, many contract problems have been successfully resolved after those involved consulted with business and commercial law attorneys.

Source:, "Humana, Tenet cut ties over contract dispute", Susan Morse, Oct. 14, 2016

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