Nov. 18, 2020

CommonSpirit Health to Go Out of Network on Dec. 16

As we told you last month, we received a termination notice from CommonSpirit Health. It demanded double-digit increases in the prices our members pay for care. The system also demanded a huge cash payment up front to stay in our networks. We made a generous offer to CommonSpirit, but they declined. Therefore, we expect they will be leaving our networks after Dec. 16, 2020.

The demands: If we had agreed to CommonSpirit’s demands, it would have been the highest-paid hospital system in Texas by a huge margin. We believe in paying fair prices for quality care, but the prices it required did not come with a guarantee of improved care or quality. We are acting in the best interest of our members, employers and the communities of Houston, Bryan-College Station, Lufkin and the rest of the southeast Texas.

The ripple effect of the price increases CommonSpirit demanded would have raised the already high cost of health care across the state.

Our next steps: We will now be working to safely transfer our members’ care to other facilities.

Yes, but: While they declined our offer, CommonSpirit is welcome to stay in our networks under the current agreement that would have expired at the end of 2021. We hope they will withdraw their termination.

Impact: CommonSpirit facilities will no longer be in these provider networks after Dec. 16, 2020:

• ParPlan
• Blue Choice PPO^SM
• Blue Premier^SM
• Blue Essentials^SM
• Blue Advantage HMO^SM
• Medicare Advantage PPO^SM
• Medicare Advantage HMO^SM
• Medicaid

CommonSpirit will stay in our MyBlue Health^SM network, but if new contracts are not signed, it will leave MyBlue Health after Dec. 31, 2021.

Back story: CommonSpirit owns 15 hospitals throughout Houston and East Texas, including the CHI St. Luke’s and CHI St. Joseph hospitals. A complete list of hospitals is below.

The entire CommonSpirit Health system of 137 hospitals has experienced a loss in revenue . Yet, it received $826 million from the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the largest of any hospital system in the country. It also received $2.6 billion from the Medicare Accelerated and Advance Payment Program. While its financial position is unfortunate, our members in Texas should not have to bear the brunt of the system’s fiscal decisions.

Impacted hospitals: The following facilities are part of this negotiation.

Hospital or Surgery Center	Address	City	County
St Joseph Regional Health Center	2801 Franciscan Dr	Bryan	Brazos
Burleson St. Joseph Health Center	1101 Woodson Drive	Caldwell	Burleson
CHI St. Joseph Health College Station Hospital	1604 Rock Prairie Rd	College Station	Brazos
CHI St. Luke’s Health Baylor College Medicine Medical Center	6720 Bertner Avenue	Houston	Harris
St. Luke’s Hospital at The Vintage	20171 Chasewood Park Dr	Houston	Harris
Brazosport Regional Health System	100 Medical Drive	Lake Jackson	Brazoria
Memorial Medical Center Livingston	1717 Hwy 59 Bypass	Livingston	Polk
Memorial Medical Center of East Texas	1201 West Frank Avenue	Lufkin	Angelina
Madison St. Joseph Health Center	100 W Cross Street	Madisonville	Madison
Grimes St. Joseph Health Center	210 South Judson Street	Navasota	Grimes
St. Luke’s Patients Medical Center	4600 E Sam Houston Pkwy S	Pasadena	Harris
Memorial Medical Center San Augustine	511 Hospital Street	San Augustine	San Augustine
St. Luke’s Sugar Land Hospital	1317 Lake Pointe Pkwy	Sugar Land	Fort Bend
St. Luke’s Lakeside Hospital LLC	17400 St Lukes Way	The Woodlands	Montgomery
St. Luke’s The Woodlands Hospital	17200 St Lukes Way	The Woodlands	Montgomery

More information: Visit bcbstx.com/CHI for the latest information. Please contact your Blue Cross and Blue Shield of Texas account representative with any questions or concerns.