Both Carondelet Health Network and Abrazo Community Health Network are owned by Dallas-based Tenet Healthcare.
Carondelet expressed its frustration in a Nov. 30 newspaper ad, which encouraged patients to call Blue Shield and demand “fair” rates. Carondelet operates three hospitals in southern Arizona, as well as various other health clinics and facilities.
Abrazo — which operates six Phoenix-area hospitals, two emergency centers and other facilities — is also perturbed over contract negotiations with BCBS. Abrazo CEO Michele Finney said the system has been working on negotiations with BCBS since February and that it would be willing to work with a third party to better relationships with the insurer. “We feel we have made some very reasonable requests in the Phoenix area for rate adjustments,” she said, according to the report.
Blue Cross Blue Shield of Arizona counters the systems’ arguments. “We will not give in to demands that translate into unsustainable increases for our members and their families,” said Jeff Stelnik, senior vice president for BCBS of Arizona, according to a Tucson News 4 report. He added that Carondelet is hoping for reimbursement increases of 40 percent or more for some services. “That is sort of their playbook,” Mr. Stelnik said.
Representatives from Carondelet and Abrazo said their systems are paid less than other hospitals in the area. If the engaged parties do not reach an agreement, Carondelet and Abrazo hospitals will be out-of-network for Blue Cross Blue Shield of Arizona members as of Jan. 1.
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