A months-long contract spat between Providence and Blue Shield California may be coming to an end.
Blue Shield of California last week rescinded a “termination notice” issued to Providence in October 2023 that would have yanked insurance coverage for thousands of patients in its network as of June 1.
Providence on Wednesday, May 8 told its 110,000 members in an email that a tentative agreement with the healthcare insurer had been reached that “would ensure many Blue Shield members have continued in-network access to their Providence doctors, clinics and hospitals.”
The two organizations have been at odds over Blue Shield’s denial of claims and the rising costs of providing healthcare, specifically wages for its caregivers and physicians.
Jonna Constantine, a Blue Shield of California spokesperson, said Providence’s demands would have increased healthcare costs for patients and scuttle her organization’s attempts at affordability.
When contract negotiations stalled in April, Providence warned its patients that Blue Shield health insurance might flip to out of network with Providence hospitals, clinics and physicians. “We are diligently working with Blue Shield to resolve this negotiation … ” an email said at the time.
Today, Providence said it was looking forward “to continued collaboration with Blue Shield.”
No date was provided on when the contract might be signed.