Contract negotiations between Blue Cross Blue Shield of Arizona and a major health care provider in Yavapai County broke down this week. It leaves thousands of patients in several communities without in-network care.
Executives with the insurer and Yavapai Regional Medical Center for months tried to iron out an agreement. But the sides weren’t able to come together and now 11,600 people in Prescott, Chino Valley, Paulden and elsewhere in the area will be forced to travel hours to receive non-emergency services or pay higher out-of-network costs for care.
According to the medical center, Blue Cross Blue Shield rejected a final offer without a counterproposal. The hospital says it could compromise patient care and the retention of nurses and doctors. They also say the nonprofit medical center faces extreme financial challenges that put their services at risk.
"We are disappointed that our efforts to engage in constructive, collaborative and transparent conversations with BCBSAZ to reach a fair and timely agreement have not been reciprocated," said the medical center's president and CEO Anthony Torres in a statement. "At this point, they don’t seem committed to reaching an agreement."
But Blue Cross Blue Shield says it was the medical center’s decision to leave the insurance network, and its proposal included an increase to the $124 million it already pays the hospital each year.
“We had every reason to believe that Yavapai Regional Medical Center intended to meet us in the middle and stay in network,” said Pam Kehaly, president and CEO of Blue Cross Blue Shield of Arizona, in a statement. “To protect affordability, we all need to make sure that unnecessary increases be kept in check, especially in this case where hospital costs are double and triple what we see in other parts of the state.”
The medical group’s outpatient clinic care, however, will remain in-network for Blue Cross Blue Shield patients along with emergency services.
