MultiCare Yakima Memorial Hospital and clinics are now out of network for patients covered by Regence insurance plans after\u00a0the two companies failed to reach a contract agreement by their May 10 deadline.<\/p>\n
The situation affects people on employer-sponsored health insurance plans, but not Regence Medicare members, the insurance company said in a statement Monday.\u00a0<\/p>\n
Over the last year, Regence and MultiCare have been trying to reach an agreement<\/a> on a new contract. Disputes over reimbursement levels, however, have left the two entities at a standstill.<\/p>\n \u201cRegence is one of our largest commercial insurers, yet its reimbursement rates for hospital and clinician services are among the lowest and have not kept pace with rising costs driven by inflation, workforce needs, and investments necessary to preserve services and ensure long-term stability for the communities we serve,\u201d MultiCare Media Relations Manager Scott Thompson said in an email to the Yakima Herald-Republic.<\/p>\n Thompson added that the hospital system is \u201cdisappointed that Regence has not offered rates that reflect the financial realities facing health systems and health care providers today.\u201d<\/p>\n Thompson said MultiCare cares for about 10,000 Regence patients in Yakima. A letter sent to Regence customers last month about the potential contract termination lists 23 Yakima County providers associated with MultiCare, including MultiCare Yakima Memorial Hospital and numerous facilities, including Children\u2019s Village, Orthopedics Northwest, Lakeview, North Star Lodge and Ohana Mammography Center.<\/p>\n Regence says it engaged in good-faith negotiations with MultiCare leadership and offered rate increases that it believes \u201cmore than cover the cost of care for Regence patients.\u201d<\/p>\n \u201cThis is not the outcome we had worked toward,\u201d Regence said in a news release. \u201cOur goal is always to provide our members access to high-quality healthcare at an affordable price. We are disappointed in MultiCare\u2019s response; however, we need to stand up for affordability for our employer group customers and members.\u201d<\/p>\n According to Regence\u2019s news release, MultiCare locations in Thurston and Grays Harbor counties also fell out of network for commercial plan members on Sunday. Both companies have said they remain committed to reaching an agreement in the future.<\/p>\n