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Published on March 11, 2024
Patients Scramble for New Providers as Dignity Health Ends BCBSAZ In-Network Coverage in ArizonaSource: Google Street View

In the latest healthcare shakeup to hit Arizona, thousands of patients have been left scurrying to find new doctors after Dignity Health and Blue Cross Blue Shield of Arizona (BCBSAZ) failed to bridge their contractual chasm. As of February 1, 2024, Dignity Health no longer accepts BCBSAZ for in-network coverage, according to a report by AZFamily. Caught in the crosshairs are the state's subscribers who now face the potential hike in health care costs unless they can navigate the suddenly choppy waters to find alternative in-network providers.

The contentious standoff began when the two companies could not finalize a contract. Dignity Health blamed BCBSAZ, accusing the insurer of refusing to pay for medical services amidst soaring inflation and operational costs. "Despite our best efforts, BCBSAZ is still unwilling to accept fair contract terms," stated Dignity Health. They claim the insurer is also holding back millions in unpaid claims. On the flip side, BCBSAZ alleges that Dignity Health is attempting to drive up health costs, pointing to its $153 million profit from the previous year. They have stressed their efforts to negotiate fairly and noted that emergency room visits and certain ongoing treatments would still be covered at in-network rates.

The impasse extends beyond just BCBSAZ subscribers, with Dignity Health wading through similar murky contract negotiations with Aetna. As reported by ABC15, Dignity Health could potentially exit Aetna's network come March 31, a move that would ripple across California, Arizona, and Nevada.

For patients caught off-guard, there might be options. Expert Michelle Riddle, with Complete Dignity, mentioned in an AZFamily interview, explained that requesting "Continuity of Care" with Blue Cross might allow them to retain their doctors at in-network costs. Riddle advises patients to compile their medical records to establish ongoing treatments. While Yavapai Regional Medical Center remains an option for BCBSAZ members, each Dignity hospital has an alternative within roughly 3 miles for those in need.

The tussle between Dignity Health and BCBSAZ has underscored an ongoing issue in the American healthcare system - the tension between providers' financial demands and insurers' efforts to contain costs, often with patients ending up in the middle. As negotiations remain stagnant, the impact on patient care and expenses is yet to be fully realized.