PHOENIX — All Dignity Health hospitals in Arizona, except for the Yavapai Regional Medical Center, are now out of network for anyone covered by Blue Cross Blue Shield of Arizona, the state's largest health insurance provider, according to a post on Blue Cross Blue Shield's website.
The move went into effect on Feb. 1.
Blue Cross Blue Shield said they tried to keep Dignity Health in-network, but their offers of "fair and reasonable increases" were rejected.
This move will not affect emergency room visits, which will continue to be covered as if they are in-network.
Anyone currently being treated by Dignity Health will continue to have their treatments covered.
Anyone with FEP, Medicare Advantage or Individual and Family Affordable Care Act plans will also not be impacted by this move. Dignity Health will remain in-network for those plans until Jan. 1, 2025.
This move will not affect Yavapai Regional as the hospital and Blue Cross Blue Shield of Arizona reached a deal to continue providing in-network coverage last April.
12News reached out to Dignity Health, who provided this statement.
Over the last several months, Dignity Health has been working in good faith to reach a new, responsible contract agreement with Blue Cross Blue Shield of Arizona (BCBSAZ) that puts patients first, and keeps Dignity Health in-network for BCBSAZ members.
Despite our best efforts, BCBSAZ is still unwilling to accept fair contract terms. As a result, beginning February 1, 2024, Dignity Health is no longer considered part of BCBSAZ’s networks in Maricopa and Pinal Counties for most BCBSAZ members.
It was never our intent to leave the BCBSAZ network. We submitted several proposals to BCBSAZ and they rejected each one. We also offered to extend the negotiation period an additional two weeks in an attempt to avoid disruption for our patients, but BCBSAZ rejected our extension offer without providing a counter offer, causing the existing agreement to terminate. To our great disappointment, BCBSAZ did not formally notify us of their decision to remove us from the network.
Our doctors and hospitals rely on fair contracts to help us cover normal increases in the cost of providing high-quality care. Inflation has increased costs substantially and has created serious challenges for not-for-profit health care providers like us throughout Arizona and across the nation. We had hoped that BCBSAZ would work with us on collaborative solutions, but they have done the opposite. In fact, BCBSAZ has not even honored the terms of our existing contract: They are refusing to pay millions of dollars in outstanding claims for care our providers have already delivered, despite our repeated requests for relief.
We do not underestimate our responsibility as one of the region’s highest-quality health care organizations providing life-saving care today and in the future. Patients are at the center of everything we do, and we recognize the inconvenience this situation creates.
Although our contract with BCBSAZ has ended, we are continuing to work in the best interests of our patients in hopes of reaching a new agreement with BCBSAZ.
We encourage patients to visit keepdignityhealth.org to stay informed or call 877-264-3264 with questions about their coverage including continuity of care.
Watch 12News+ for free
You can now watch 12News content anytime, anywhere thanks to the 12News+ app!
The free 12News+ app from 12News lets users stream live events — including daily newscasts like "Today in AZ" and "12 News" and our daily lifestyle program, "Arizona Midday"—on Roku and Amazon Fire TV.
12News+ showcases live video throughout the day for breaking news, local news, weather and even an occasional moment of Zen showcasing breathtaking sights from across Arizona.
Users can also watch on-demand videos of top stories, local politics, I-Team investigations, Arizona-specific features and vintage videos from the 12News archives.
Roku: Add the channel from the Roku store or by searching for "12 News KPNX."
Amazon Fire TV: Search for "12 News KPNX" to find the free 12News+ app to add to your account, or have the 12News+ app delivered directly to your Amazon Fire TV through Amazon.com or the Amazon app.
Up to Speed
Catch up on the latest news and stories on the 12News YouTube channel. Subscribe today.