Feb. 19, 2025

For over a year, Salem Health Hospitals and Clinics has worked tirelessly to reach agreement on a fair and equitable contract with Regence BlueCross BlueShield that covers the cost of providing health care in the mid-valley. Despite daily negotiations and numerous accommodations by Salem Health, Regence has been unwilling to offer any meaningful compromise, forcing Salem Health to stop accepting BlueCross BlueShield insurance effective Feb. 24, 2025.

“It is Salem Health’s obligation and privilege to provide high quality of care for our community,” said Cheryl Wolfe, Salem Health president and CEO. “Unfortunately, that means making difficult decisions to ensure we can provide that level of care now and for the next generation. We understand this decision will be difficult for our patients who are BlueCross BlueShield members. We have worked so hard to find an alternative path with Regence and are so deeply frustrated and heartbroken that this is where we are.”

Since the contract between the two parties expired Jan. 1, Salem Health has seen a pattern of Regence denying coverage and passing the full cost of care to their members. This leaves patients with overwhelming medical bills, even as these members continue to pay their premiums to Regence.

Salem Health requested continuity of care for all Regence members after January while the two parties negotiated toward a fair contract. Regence largely denied this request. Out of more than 30,000 local BlueCross BlueShield members, Regence has granted continuity of care for less than 400, leaving the others with almost no local access to care and large medical bills. To avoid further crippling medical debt for patients, Salem Health has made the difficult decision to stop accepting BlueCross BlueShield insurance.

Negotiating in good faith, Salem Health has compromised more than 10% from the originally requested rate; Regence has compromised 1% from their original offer. Regence lags all other commercial carriers by more than 35%. It appears that Regence BCBS never intended to agree to a fair contract that addresses the costs of care — their final offer creates unsustainable financial implications for the local health care system. Salem Health Hospitals and Clinics has been out of network with Regence since Jan. 1, 2025 and will no longer accept Regence BCBS insurance for scheduled services.

“We hope that Regence BCBS members who can change their insurance will,” said James Parr, Salem Health’s chief financial officer. “Salem Health has contracts with 15 other insurance carriers and all have agreed to fair rates.”

Salem Health is contacting patients to aid in their transition of care. Regence has stated they have adequate providers to care for their members. Salem Health has reviewed patient records and identified some oncology patients who are mid-treatment. Salem Health will ensure these patients can complete their care without debilitating medical debt.

Under the Emergency Medical Treatment and Labor Act (EMTALA), patients having a medical emergency, including laboring moms, should come to any hospital for treatment, including Salem Health and West Valley Hospital, even if it's out of their insurance network. Salem Health will provide patients with the care they need, regardless of insurance coverage. No one will be turned away in any emergency situation. Additionally, there are additional protections from surprise out-of-network medical bills for emergency care, so patients only pay in-network rates, even if the hospital or providers are out of network.