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YRMC Negotiation Update with Blue Cross Blue Shield of Arizona

Anthony Torres, MD, President and CEO at Dignity Health YRMC shares an update.


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On the evening of Wed, February 8, 2023, Anthony Torres, MD, President and CEO at Dignity Health Yavapai Regional Medical Center (YRMC) provided an update on the negotiation status with Blue Cross Blue Shield of Arizona.

Blue Cross Blue Shield of Arizona, Dignity Health, negotiations, Yavapai Regional Medical Center, YRMC, YRMG,

Yavapai Regional Medical Center – East. Prescott Valley, AZ.

“As the president and CEO of Dignity Health Yavapai Regional Medical Center (YRMC) as well as a longtime physician and resident of the Yavapai County community, I want to share an update on the negotiations between YRMG and Blue Cross Blue Shield of Arizona (BCBSAZ).

For many months, YRMC has been negotiating with BCBSAZ in an effort to protect access to health care services for thousands of patients. As a not-for-profit healthcare organization, we rely on reimbursement from health plans to sustain essential medical care and community benefits. Unfortunately, BCBSAZ has been unwilling to agree to a new contract that would put patients and our community first.

We are disappointed that our efforts to engage in constructive, collaborative, and transparent conversations with BCBSAZ to reach a fair and timely agreement have not been reciprocated. Our most recent offer made significant concessions and was well below our own inflation. BCBSAZ rejected it without even making a counter-proposal. At this point, they don’t seem committed to reaching an agreement.

As a result, YRMC and BCBSAZ have not been able to come to a mutual agreement. Beginning February 8 at 5 p.m., YRMC is no longer considered part of the BCBSAZ network. Yavapai Regional Medical Group (YRMG) outpatient clinic services will remain in-network for patients who are members of BCBSAZ.

We know how important this is to our community. We committed to working around the clock to reach an agreement. Unfortunately, BCBSAZ has not shown that same urgency or commitment, or a willingness to compromise. As a result, costs will now be shifted by BCBSAZ to patients in the form of out-of-pocket costs and deductibles. Our patients and community deserve better.

Like many hospitals, our local hospital faces extreme financial challenges that are putting our services at risk. Because BCBSAZ was unwilling to come to an agreement, we are now facing a significant impact to the health of our community. In fact, this may:

  • threaten our ability to continue providing essential care to patients in the coming years
  • compromise our efforts to recruit and retain the nurses and doctors that care for our patients each day
  • force Yavapai County residents to travel great distances to receive some forms of medical care
  • limit our ability to expand community services, especially for those who are vulnerable

BCBSAZ recently attempted to publicly downplay the impact a contract termination would have on the community. At YRMC, we believe every life matters and every patient should be financially protected by their health insurance plan. We do not underestimate our responsibility as the region’s high-quality healthcare provider and we believe in keeping care local.

YRMC has been providing health care in our community for nearly 80 years, and our patients are at the center of everything we do. This and the extraordinary, close-knit community of Yavapai County are what drew me to move here in 2006. Since that time, I have made a commitment to be a faithful neighbor and doctor, putting our patients first.

As a medical provider and a resident of this great community, I am extremely concerned about BCBSAZ’s lack of interest to collaborate so that we could come to a reasonable agreement for the sake of our patients.

I recognize the inconvenience and stress this negotiation has caused for our patients with BCBSAZ coverage. Please know that it is our intent to continue our conversations with BCBSAZ and reach an agreement to make sure the healthcare services available in our community can continue for years to come.

For our patients with BCBSAZ who may have questions, I encourage you to visit yrmc.org/bcbsaz for more information.”

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2 responses to “YRMC Negotiation Update with Blue Cross Blue Shield of Arizona”

  1. Over a 50 year period, when having no choice to be on a BCBS plan, I have always found them to be unreasonable and difficult to deal with. Going on Medicare a number of years ago, I steered clear of all promises they made as a supplement and still cringe when someone tells me they have BCBS. My prayers go out to those who affected by this callous treatment. Those in the decision-making process for BCBS will eventually have to stand in judgement before God!

  2. Connie says:

    Yavapai Regional Medical Group (YRMG) outpatient clinic service – does that only include the physicians and their staff (people) or does it also include any outpatient services, as radiology, mammograms at the Breast Care center in PV, outpatient surgery?

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