Statement from Dignity Health regarding contract negotiations with Blue Cross Blue Shield of Arizona

(PHOENIX - February 1, 2024) - 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.