Patients might become out of network with Providence hospitals, clinics and physicians if the contract is not renewed by June 1, Providence wrote to its 110,000 patients.
Providence and Blue Shield of California are negotiating over a new contract. The old one expires on June 1. .over how much the insurance company covers patient care, have until June 1 to ink a new deal before the old contract expires.
Such disputes during contract negotiations are common, though typically the rows don’t spill this deeply into the public eye, said Cynthia Saunders, a former assistant professor of health care administration at California State University, Long Beach. In late March, Blue Shield urged customers to look beyond Providence facilities for care.
“Providence wants to be able to provide our caregivers and our physicians living wages. And in order to do that, we need to be able to get paid the cost of care to provide services to patients,” Driscoll said. “From our standpoint, we’ve been negotiating in good faith, seeking reasonable terms to help cover those costs as the rising cost of care.”
Jonna Constantine, a Blue Shield of California spokesperson, said Providence’s demands would increase healthcare costs for patients and scuttle her organization’s attempts at affordability. “As physicians, we cannot accept that our patients are often being denied treatment for essential care, including medications, therapies and procedures,” the letter stated.
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