In the second week of February, negotiations between Dignity Health YRMC and Blue Cross Blue Shield of Arizona ended without mutual agreement. Dr. Anthony Torres, President and CEO of Dignity Health Yavapai Regional Medical Center and Pam Kehaly, President and CEO of Blue Cross Blue Shield, Arizona, commented on the situation.

Statement from Anthony Torres, MD, President and CEO of Dignity Health Yavapai Regional Medical Center (YRMC):

Anthony Torres, MD is President and CEO of Dignity Health YRMC and YRMG.

Over the past few weeks, I have been concerned about these patients due to a dispute that erupted over negotiations between the YRMC and the Blue Cross Blue Shield of Arizona (BCBSAZ). Unfortunately, the Blue Cross Blue Shield of Arizona is reluctant to agree to a new contract that puts patients and communities first. As a result, YRMC and her BCBSAZ were unable to reach a mutual agreement and YRMC was no longer considered part of her BCBSAZ network.

This disappointing result created a lot of malice in the community, some of which was fueled by misinformation.

I am a doctor, not a politician. I feel compelled to speak up as I am concerned that the controversy has damaged his YRMC reputation in the community. After all, this is my community and YRMC’s community since he was established as Yavapai County’s sole health care provider about 80 years ago.

When I run into my former patients, I can look them in the eye and tell them the facts.

• The claim that YRMC sought double-digit rate increases is false. Through negotiations, YRMC’s proposed price increase was in the single digits, below Arizona’s medical inflation rate.
• The proposed rate hike was not corporate greed. At a time when nonprofit hospitals across the country are struggling financially, we are investing in new technologies to retain and recruit doctors and other caregivers, and to bring quality care closer to patients’ homes. Requires a responsible contract that allows access to more convenient.
• The proposals presented by BCBSAZ jeopardize our ability to continue to provide all healthcare services.

It’s a difficult time in the healthcare industry, especially in rural areas. We cannot maintain a high level of care unless we take financial responsibility. However, the controversy surrounding the negotiations has created a false narrative that YRMC is more focused on finance than community. Our record is not:

• In January, YRMC provided approximately $320,000 in community grants used to improve community health and well-being.
• YRMC’s Family Resource Center helps participating families become more independent and increase college enrollment and training rates. Ongoing data provided to Healthy Families Arizona showed her child’s access to health care improved, including a 70% reduction in her pregnancy complications and fewer behavioral and developmental problems in her child. indicates that
• More than $200,000 was recently raised for YRMC’s Breast Care Program, which provides services including screening for women who cannot afford mammograms.

When I joined YRMC many years ago, I was dedicated to improving health care for my fellow Yavapai County residents. The termination of our contract with Blue Cross Blue Shield of Arizona has not changed that commitment. We will continue to provide high-quality medical services that are trusted by the local community.

–Anthony Torres, MD is President and CEO of Dignity Health YRMC and YRMG.

Statement from Pam Kehaly, President and CEO of Blue Cross Blue Shield of Arizona

said Pam Kehaly, President and CEO of Blue Cross Blue Shield of Arizona.

I would like to take this opportunity to clarify that Yavapai Regional Medical Center has decided to withdraw from the Blue Cross Blue Shield of Arizona network. Our hope is that Yavapai Regional Medical Center will choose to accept our proposal, significantly increasing his $124 million already paid for services on behalf of the Member.

1. We want Yavapai Regional Medical Center to stay in the network.

After months of working to make this happen, we met them halfway and offered millions more dollars, but they refused to meet us halfway through. can be accepted at any time, and we welcome them with open arms.

2. Yavapai Regional Medical Center’s commitment to the community should extend to affordability.

According to published financial data, Yavapai Regional Medical Center has consistently posted positive operating income. This is not a financially distressed hospital, it has a strong track record of successfully managing resources on behalf of the community. That said, we should not give up on making healthcare more affordable.

Among all Blue Cross Blue Shield networks in Arizona, Yavapai Regional Medical Center is the fourth most expensive hospital in the state, with reimbursement rates twice the average of Phoenix hospitals and three times the average of Tucson hospitals is receiving

3. Yavapai Regional Medical Center receives $124 million annually from the Blue Cross Blue Shield of Arizona.

We have had a productive relationship with Yavapai Regional Medical Center for decades and it has never been interrupted. That positive relationship seems to have changed since partnering with Dignity Health. We would like the Yavapai Regional Medical Center to accept this proposal. That way, we can pay on behalf of our members an increase on top of her $124 million that members already receive each year.

4. Members receive the care they need.

ER visits are always covered, with thousands of in-network providers in Yavapai County. According to self-reported health information exchange data from Yavapai Regional Medical Center, an average of 3-4 people per day were disconnected for hospitalization in the past 3 months. Our clinical team is available 24/7 and works with providers to ensure that specific patients receive the care they need. For more information on how inpatients are being cared for, visit azbluefacts.com/yavapai/your-care.

If a member requires admission from the ER, admission may be handled in different ways depending on the patient’s medical status.

• If a member requires more advanced care or treatment than the ER facility can provide, the patient will be transferred to another facility that can provide the necessary care.
• If Yavapai Regional Medical Center is able to provide care and the patient can be safely transported to a facility within the network, BCBSAZ will assess the situation and may arrange for member transport at no additional cost to the member.
• If the Yavapai Regional Medical Center can provide treatment and the patient cannot be safely transported to a facility within the network, the patient will be covered by the Yavapai Regional Medical Center network.

5. We are concerned that the Yavapai Regional Medical Center has canceled a patient’s appointment.

Yavapai Regional Medical Center appears to be causing patient confusion by canceling patients who are not eligible for ongoing care or included in negotiated contracts. We have received reports from patients of these occurrences and are working to ensure that they receive treatment. When network transitions occur, the health of our members is our absolute priority. Continuity of care is addressed by law, contract language, and medical ethics to ensure ongoing care is not interrupted.

More information and updates are available at: azbluefacts.com/YavapaiFrom now on, I will continue to be devoted to all the members. We look forward to working together for health, community and affordability.

said Pam Kehaly, President and CEO of Blue Cross Blue Shield of Arizona.

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