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Albany Med Health System and CDPHP have reached a new contract agreement, ensuring that CDPHP members can continue using Albany Med's medical facilities through 2026. The agreement comes after months of negotiations over payment disputes, particularly related to the Medicare Wage Index. CDPHP had withheld $30 million in payments due to changes in federal rules that increased Medicare payments to hospitals without a corresponding increase in Medicare Advantage payments. As part of the new contract, CDPHP will reimburse Albany Med for the withheld payments, and Albany Med will drop its lawsuit against the insurer.
Albany Med Health System President and CEO Dr. Dennis P. McKenna expressed gratitude for the agreement, emphasizing the importance of maintaining access to high-quality care. "Many of the advanced services we offer cannot be found anywhere else locally," McKenna said. CDPHP President and CEO Brian O’Grady also highlighted the significance of the contract, stating that it ensures uninterrupted access to critical health care services for their members.
The new contract was approved by the Albany Med Health System Board of Directors and marks a resolution to the dispute that began in August 2024. The agreement reflects a collaborative effort to address the financial challenges posed by the Medicare Wage Index changes and underscores the commitment of both organizations to serve their community effectively.