We congratulate CHI Franciscan Health and Regence BlueShield for coming to agreement on a new contract regarding reimbursements. The agreement brings Harrison Medical Center and Harrison HealthPartners back into the Regence network, which means Regence members have access to all health care services at Harrison Medical Center and Harrison HealthPartners at in-network rates.
We know reaching agreement wasn’t easy and likely involved compromise on both sides, but we thank Regence and Harrison for their every effort.
The crux of the matter was the amount of reimbursement for care that Regence and Harrison would agree to. According to Regence, Harrison’s desired increase in the reimbursement rate would have required Regence to raise its rates, resulting in more costly premiums for its members. In turn, Harrison called Regence’s offer “fiscally unsustainable long term.” Both sides hit a stalemate and the contract ended Aug. 22. Harrison was officially out of network, meaning Regence members would pay higher out-of-pocket costs for non-emergency care.
Despite the tense language of the time — each accused the other of being ”unwilling to accept a fair and reasonable rate increase” or “[refusing] to negotiate in good faith” — they showed a desire to reach a new agreement.
Both sides continued to negotiate. Harrison offered a discount program for Regence members to help offset the higher out-of-pocket costs. The discount program continued until Feb. 14.
A new agreement was reached, effective Feb. 15.
As we stated last week, we know there are costs to providing health care, and we know that there has to be a return on investment. But we depend on the insurance carrier and the local health care provider to make it work.
We were confident Regence and Harrison would reach an agreement that benefits all. And they did. And for that, we are grateful.
And we prefer the tone of late to the tense language of last year’s break:
“We are extremely pleased that we have been able to come to an agreement with Regence BlueShield on a new contract,” Harrison president David Schultz said in a joint announcement.
“This contract affords our patients continued access to all the providers and services Harrison Medical Center has to offer and at the same time provides for the continued financial success of both organizations.”
And this from Don Antonucci, president of Regence BlueShield: “Today’s agreement with CHI Franciscan Health ensures that Regence members will have access and choice as they seek quality care at an affordable price for themselves and their families.”
Congratulations, Regence and CHI Franciscan Health. Those who depend on you for access to quality medical care thank you.