Sharon Hill, Pa. In an escalating reimbursement battle, Legend Healthcare terminated its participation agreement with UnitedHealthcare, charging that the Minnetonka, Minn.-based managed care organization breached the contract.

Legend, a network of 700 providers representing 1,150 locations, alleges that UnitedHealthcare pressured its members to pull out of the network.

"In late September, we began to document communications from providers notifying us of their intent to withdraw from the network as a result of pressure being placed upon them by UnitedHealthcare," said Philip Leone, Legend's executive vice president and chief operating officer. "And we couldn't ignore this exploitation of our network."

UnitedHealthcare did not return phone calls seeking comment on Legend's allegations.

The disagreement stems from a dispute over money Legend says it is owed by UnitedHealthcare's South Florida plan for services rendered from October 1998 to August 1999. Legend has filed a $1.5 million lawsuit over that issue. It also has filed an $11 million lawsuit against the MCO seeking damages resulting from allegedly wrongful termination.

That was prompted by UnitedHealthcare's notifying Legend in September that it planned to terminate its agreement with the company. The MCO rescinded that notice in October but continued, Leone said, to contact Legend providers, prompting Legend to terminate the agreement in November.

Since then, Legend has been "actively transitioning patients through our network providers" so that care is not interrupted. Leone said providers are being given information so they can negotiate their own rates with the MCO.