PORTLAND, OR – Providence Health and Services and Regence BlueCross BlueShield of Oregon have reached an agreement to keep the hospital system in the insurance provider network, ensuring that Oregonians with Regence coverage will not 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 had been deadlocked for weeks over reimbursement rates, with Providence claiming it needed higher rates to keep up with rising labor and supply costs, and Regence arguing that Providence’s proposal would be too costly and result in higher insurance premiums for customers.
Monday was the deadline for the companies to either reach a new deal or part ways, and each announced in Monday morning news releases that they had worked over the weekend and reached an agreement. Providence said the new contract is still being finalized, but it will remain in the Regence network while details are worked out to avoid any interruption in coverage for Regence customers at Providence facilities.
“We are grateful that Regency recognizes our need to meet rising costs and compensate our caregivers, and we look forward to working in continued partnership and collaboration with Regency to serve our patients and communities with world-class health care services,” Providence said in a statement.
“Our organization has worked actively to avoid disruption to our network of providers and maintain access to a critical care partner in our communities,” Regence said in a statement posted on its website. “We thank everyone affected by the negotiations for their patience during this process.” .
BlueCross BlueShield is a brand name shared by a nationwide association of separate health insurance companies; The dispute with Providence was for Regence BlueCross BlueShield in Oregon. About 260,000 Oregonians have coverage at Providence hospitals through Regency.