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Published on February 03, 2024
Dignity Health Ends In-Network Services with Blue Cross Blue Shield in Arizona, Patients Brace for Rising CostsSource: Google Street View

The healthcare landscape in Arizona just turned rockier for patients covered under Blue Cross Blue Shield of Arizona (BCBSAZ). Starting February 1, Dignity Health hospitals across Maricopa and Pinal Counties have stopped accepting BCBSAZ as an in-network provider, leaving numerous patients facing potentially higher medical costs outside their preferred healthcare network. The contract fallout, reported by 12News, has hit everyone except those with FEP, Medicare Advantage or Affordable Care Act plans - for them, Dignity Health will remain in-network until the end of 2024.

Caught in this healthcare crossfire is Yavapai Regional Medical Center and its associated medical group, which, after an extension of contract negotiations, officially severed in-network ties with BCBSAZ on February 8. This recent split, in contrast to the hopefulness expressed just days prior, has sprung concerns among residents and local officials as the Prescott region stares down limited options for affordable healthcare. As indicated in an email to 12News, BCBSAZ assured members, even if no agreement was in sight, hospital stays in-process and ongoing treatments could still be completed in-network.

Senator Mark Kelly, Senator Kyrsten Sinema, and Representative Eli Crane had earlier joined voices in a letter urging both Dignity Health and BCBSAZ to continue negotiations to spare residents from this acute healthcare disruption. Even the local government stepped in, with Yavapai County Board of Supervisors Chairman James Gregory publicly pressing for sustained talks to resolve the stalemate. However, despite the growing tension and calls for compromise, the absence of a deal has turned the letters and appeals to ash.

According to analysis by Dr. Dan Derksen, associate vice president for Health Services at the University of Arizona, reported by 12News, the healthcare standoff isn't just about the difficulty in agreeing on reimbursement rates; it's also about the surge in costs related to medical supplies and workforce shortages. "We don't have enough physicians; we don't have enough nurses. We don't have enough health personnel," Derksen explained, highlighting the strained resources that compound the problem.

Despite Dignity Health's claims of attempting to reach a "new, responsible contract agreement" with BCBSAZ, as obtained by 12News, and explaining their multiple proposals were rejected by the insurance provider, which resulted in the termination, the negotiation gridlock persists. Patients are now ultimately caught in the middle of this tussle, forced to navigate the resultant complexities of their healthcare access against the backdrop of a broader, system-wide financial struggle.