By: Nick Moran
Beckers Hospital Review
After Dignity Health issued a contract termination notice in January, the health system and Anthem have ended their relationship as of July 16.
Anthem claimed in a statement the relationship primarily fizzled out because the insurer refused to agree to rate increases that would continue to make San Francisco-based Dignity more expensive than other systems. The insurer said Dignity is nearly 30 percent more expensive than other California health systems.
An Anthem spokesperson told Becker’s that it is still negotiating with Dignity, but has made members aware of alternatives in the interim.
“Anthem Blue Cross (Anthem) is currently in active negotiations with Dignity Health (Dignity) and working to reach a fair agreement that would keep Dignity in our provider network,” Anthem said in a statement to Becker’s. “Maintaining stability in our network of local doctors and hospitals is extremely important to us. As we negotiate with providers, we try to strike a balance between protecting affordability and providing a broad network of providers to create choices, which can take time.”
A Dignity spokesperson also confirmed negotiations are ongoing, but cited inflation costs as a point of contention. They pointed to the company’s website dedicated to the negotiation process for more information.