Community Health System President and CEO Craig Wagoner speaks at a Fresno Rotary Club meeting on Monday, June 22, 2026. Photo by Ben Hensley
published on June 22, 2026 – 1:57 PM
Written by Ben Hensley
A months-long contract dispute between Community Health System and Blue Shield of California could be over as early as Monday.
Finish line near
Speaking at the Fresno Rotary Club meeting in Downtown Fresno on Monday, Community Health System President and CEO Craig Wagoner said negotiations are nearing completion.
“We’re really, really, really close,” Wagoner said. “We have a verbal agreement. We’re just passing papers now.”
He said the deal could be inked by the end of the day.
Months of disruption
The two sides have been locked in negotiations since their previous provider agreement expired Jan. 31, leaving some Blue Shield members without in-network access to Community hospitals, facilities and physicians.
The dispute drew attention from local employers, public agencies and elected officials, in particular, after City of Fresno employees were caught in the middle of the standoff.
Reimbursement rates at center
Throughout negotiations, Community has maintained that improved commercial reimbursement rates were necessary to help offset mounting financial pressures facing the health system. Community leaders have repeatedly pointed to rising labor, pharmaceutical and operating costs and the system’s heavy reliance on Medi-Cal and Medicare patients, which account for approximately 85% of its patient volume.
Wagoner later described the negotiations as part of the provider’s broader effort to secure improved reimbursement rates from commercial insurers.
“We have to have better reimbursement,” Wagoner said. “We need to be paid fairly for the services that we provide.”
Thawing standoff
The comments mark a significant shift from earlier this year; in February, Community and Blue Shield publicly disagreed over the status of negotiations after allowing their contracts to expire. Community argued that reimbursement rates were insufficient to support the rising cost of providing care, while Blue Shield argued it had offered rate increases and other payment enhancements during negotiations.
By March, Community officials said the two sides were still not close to reaching an agreement, while Blue Shield said it remained engaged in negotiations and intended to respond to Community’s latest proposal.