PORTLAND, Ore. — Providence Health and Services and Regence BlueCross BlueShield of Oregon have reached an agreement to keep the hospital system in the insurance provider's network, ensuring that Oregonians with Regence coverage won't face out-of-network bills if they visit Providence facilities.
The contract between the two companies expired at the end of last year, but renewal negotiations have been deadlocked for weeks over reimbursement rates, with Providence claiming it needs higher rates to keep up with rising labor and supply costs and Regence arguing that Providence's proposal would be too expensive and result in higher premiums for customers.
Monday was the deadline for the companies to either reach a new deal or split up, and they each announced in news releases Monday morning that they had worked through the weekend and reached an agreement. The new contract is still being finalized, Providence said, but it will remain in the Regence network while the details are worked out to avoid any interruption in coverage for Regence customers at Providence facilities.
"We are grateful for Regence’s acknowledgement of our need to meet rising costs and compensate our caregivers, and we look forward to working in continued partnership and collaboration with Regence to serve our patients and communities with world-class health care services," Providence said in a statement.
"We recognize the uncertainty these negotiations caused for some Regence members and appreciate their patience as we worked with Providence leadership to achieve reimbursement rates that are more sustainable for our members and customers," Regence said in a statement.
BlueCross BlueShield is a brand name shared by an association of separate health insurance companies nationwide; the dispute with Providence was specific to Regence BlueCross BlueShield of Oregon. About 260,000 Oregonians have coverage at Providence hospitals through Regence.
