Tenet, Cigna Ink Multi-Year Deal

The new multi-year contract will allow Cigna members in-network access at Tenet facilities.

Cigna Corp. and Tenet Healthcare announced a new deal Tuesday to provide in-network coverage for Cigna members at Tenet facilities in the coming years.

In addition to allowing in-network access for enrollees in Cigna's commercial health plans, Tenet also agreed to remain an in-network provider for the Cigna-HealthSpring Medicare Advantage plan as well. 

The contract agreement was reached after months of negotiations, including a public back and forth between the Philadelphia-based insurer and the Dallas-based provider ahead of a New Year's Day deadline on the expiring operating contract. 

Related: Cigna, Tenet Healthcare Point Fingers as Memphis-area Contract Weeks Away From Expiration

C-suite perspective:

“We are pleased to have reached a successful resolution with Cigna," Ron Rittenmeyer, Tenet CEO said in a statement. "We believe this is the right outcome for our patients, employees and communities, and we look forward to continuing to serve Cigna members around the country today and in years to come. We remain committed to providing them with the trusted, compassionate care they deserve.”

This marks Cigna's first major business move since closing on its $71 billion megamerger with Express Scripts at the end of 2018. 

For Tenet, the move is another step the provider is taking to shake things up following a lackluster Q3 earnings report, in which Rittenmeyer indicated that Tenet's hospital division needed to show signs of improvement. Two weeks after the report was released, Tenet brought on a new COO and let go of its longtime president of hospital operations.