BCBS Arizona, Dignity Health hospital split after contract impasse

Prescott, Ariz.-based Dignity Health Yavapai Regional Medical Center is out of network with Blue Cross Blue Shield of Arizona after the sides were unable to reach a new contract, NBC affiliate KPNX reported Feb. 9.  

The sides were at odds over reimbursements rates, according to the report. Yavapai Regional Medical Center CEO Dr. Anthony Torres said the hospital was asking for an increase that was under the rate of inflation for its costs. 

BCBS Arizona, meanwhile, said Yavapai Regional is the fourth highest-cost hospital in the state and its average reimbursement rate is twice as much as the average Phoenix hospital, according to the report. Dr. Torres said the hospital has higher costs because of the cost to recruit and retain physicians at the rural hospital. 

The payer said the split will affect about 20 percent of its 58,000 beneficiaries in Yavapai County, according to a Feb. 8 BCBS Arizona news release. Emergency care at Yavapai Regional Medical Center will still be covered at in-network rates. 

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