Dignity Health and Blue Cross Blue Shield of Arizona agree on contract. What it means

Dignity Health and Blue Cross Blue Shield of Arizona say they've reached a contract agreement after nearly two months of leaving patients scrambling to find other providers.

The new contract is effective March 15, leaders with both organizations confirmed Thursday.

The contract ended Feb. 1 and Blue Cross Blue Shield of Arizona says it notified 16,000 members who had claims with Dignity Health during the past year, which meant some patients were left without providers at a time when the state is grappling with a doctor shortage, particularly among primary care providers.

A lack of a contract affected most but not all Valley residents with Blue Cross Blue Shield of Arizona coverage who wanted to use Dignity health providers.

Dignity Health on Thursday said that Blue Cross Blue Shield of Arizona members "once again have in-network access to Dignity Health services, facilities, and providers located in Maricopa and Pinal Counties."

The new contract "is a win for our patients who deserve access to local high-quality care, and we appreciate their patience as we have worked through this process," the emailed statement says. "From the start, our goal in working with AZ Blue has always been about ensuring we can continue to meet the needs of our patients today and in the future."

Blue Cross Blue Shield of Arizona sent out its own statement Thursday that said Dignity Health had accepted its final offer and that Dignity Health "is once again in-network."

The health insurer's emailed statement thanks Dignity Health "for joining AZ Blue in standing up for affordability."

Contract disputes between health providers and insurance companies are commonplace, but an agreement often is reached at the 11th hour, before the contract expires and patients are directly affected. That was the case with recent disputes between Phoenix Children's Hospital and Aetna and Blue Cross Blue Shield and Southwest Medical Imaging.

The dispute between Dignity Health and Blue Cross Blue Shield of Arizona was unusual because there was no last-minute agreement, which had an adverse effect on the people both companies serve.

Dignity Health is a major health provider in the Valley. Its facilities include Dignity Health St. Joseph's Hospital and Medical Center in Phoenix, including its world-renowned Barrow Neurological Institute.

Reach health care reporter Stephanie Innes at Stephanie.Innes@gannett.com or at 602-444-8369. Follow her on X, formerly known as Twitter @stephanieinnes

This article originally appeared on Arizona Republic: New Dignity and Blue Cross Blue Shield contract effective March 15