New Models of Care Prompt Providence in Oregon to End Contract with Health Net in January

September 11, 2012

PORTLAND, Ore. – Providence Health & Services – Oregon today announced it will be ending its hospital and medical group insurance contract with Health Net, effective Jan. 1, 2013.

The decision, which affects more than 10,000 Health Net members, was prompted by health care reform taking place nationwide, and the changes reform is generating within Providence and other health systems. Over the past few years, Gov. John Kitzhaber and legislative leaders have talked openly about redesigning how health care is delivered. Providence understands how these changes can impact patients and communities, yet is committed to rethinking how best to use its limited health resources to carry forth its 155-year Mission of care.

“We are revamping the way we deliver services,” said Dave Underriner, chief operating officer for Providence in Oregon. “That means we are looking for opportunities to move toward new, more coordinated models of care, including the patient-centered medical home where a team of experts work together to coordinate care for the total health needs of each patient.” Providence believes these new models will help improve health, make services more affordable and provide the best care experience.

To make this shift, Providence is reviewing its contracts with insurers, and looking for companies that support this new direction and are committed to managing costs, improving outcomes and transforming the delivery of care. In cases where existing insurance contracts only support traditional, fee-for-service care, Providence is looking at other alternatives.

The decision to end our contract with Health Net was not made lightly. It affects all Providence hospitals, clinics and services, with the exception of Providence home health services and all Providence services in southern Oregon.

Providence recognizes the impact this will have on patients, physicians and other care providers. Plans are in place to work with patients and explain the alternatives available to help them during this transition.

“Ultimately, we must identify partners who understand the broad changes in health care delivery,” said Underriner. “We need partners who are willing to work with us to ensure we are helping people be as healthy as possible, while providing the best possible care within our facilities.”