Contract negotiations between the 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 some communities without in-network care.
Insurance companies and Yavapai Regional Medical Center executives spent months trying to settle the deal. But the two sides were unable to work together, and now 11,600 people in Prescott, Chino Valley, Polden, and elsewhere in the region are forced to travel hours to get non-urgent services. .
Blue Cross Blue Shield rejected the final offer without a counteroffer, according to the medical center. They also say non-profit medical centers face extreme financial difficulties that jeopardize their services.
“We are committed to having constructive, supportive and transparent conversations with BCBSAZ to reach a fair and timely agreement,” said Anthony Torres, president and CEO of the medical center, in a statement. “At the moment, they don’t seem committed to reaching an agreement.”
But Blue Cross Blue Shield said it was the medical center’s decision to leave the insurance network, and that offer included an increase in the $124 million it already pays the hospital each year.
Blue Cross Blue Shield of Arizona President and CEO Pam Kehaly said in a statement: “To protect affordability, we need to make sure that unnecessary price hikes are contained, especially in this case where hospital costs are doubling or tripling compared to the rest of the state.”
However, medical group ambulatory care remains within the network of Blue Cross Blue Shield patients, along with emergency services.