Anthem Blue Cross announced Monday that the health insurance provider has reached a new multi-year contract agreement with Dignity Health.
In July, Anthem members were notified that Dignity Health doctors and hospitals would no longer be in their plan's network after months of failed contract negotiations between the two entities.
Dignity Health operates Marian Regional Medical Center in Santa Maria, Arroyo Grande Community Hospital, French Hospital Medical Center in San Luis Obispo, and multiple other healthcare clinics and offices on the Central Coast.
Anthem says the new agreement is retroactive to July 15, 2021, and will remain in place through April 30, 2025.
"We are pleased to continue working with Dignity. While we understand this wasn't easy for consumers, it was necessary for us to stand firm as part of our efforts to help slow the sharp rise in health care costs," said John Pickett, Anthem's Regional Vice President of Provider Solutions. "We value our relationships with providers, which are important to creating choices for our consumers and fulfilling our mission of improving lives and communities. Our members remained our number one priority as we worked hard and in good faith to find common ground and reach an agreement with Dignity that helps protect affordability."
Dignity Health provided the following statement:
“This is a win for our patients who deserve access to local high-quality care. We deeply appreciate the patience of our patients, employers, and physicians as we have worked through this process,” said Robert Quinn, M.D., CEO of the Dignity Health Medical Foundation. “From the beginning, our goal in working with Anthem has always been about ensuring we can continue to meet the needs of our patients today and in the future. This agreement ensures we can continue to providing value-driven care for Anthem members.”