The insurer that handles Medicaid for Grady Memorial Hospital in Atlanta says it will terminate the hospital's contract this weekend.
Hospital officials say that could mean a disruption of care for more than 12,000 patients starting January 2010.
Peach State Health Plan is hired by the state of Georgia to handle Medicaid claims with numerous health care providers, including a portion of patients from Grady Hospital.
The Atlanta Journal-Constitution reports that Grady and Peach State have agreed that the hospital will continue to serve these patients until the end of this year.
A Grady spokesman says the patients would have to find new doctors at a new medical facility.
Peach State officials sent a letter to legislators earlier this week saying that Grady will no longer be a Peach State provider effective November 28, 2009.
The insurer says the contract termination comes after months of negotiations.
Contributors: Carl Zornes