Working with Insurers

Resetting our contracts with payers to provide needed patient care and competitive pay for caregivers

Providence is committed to delivering high-quality, compassionate care in our communities amid the impacts of inflation, the worst health care labor shortage in decades and global supply chain disruptions.

Health care costs include pharmaceutical drug prices, supplies and what hospitals and clinics must pay employees to maintain adequate staffing levels. These costs increased 19% between 2020 and 2022 and have only continued to rise. Like other health systems across the country, Providence has experienced major monetary losses since the COVID-19 pandemic began, as revenue and reimbursement do not keep pace with the heightened costs of caring for patients.

Providence is working tirelessly to combat rising costs, yet we cannot do it all on our own. Our partners in health care also need to be part of the solution – working with us to ensure local care is sustainable for the people we serve.

That is why resetting our relationships with payers is a key step toward our recovery and renewal. Fair, timely reimbursement is imperative to continue providing market-competitive wages for Providence caregivers, who have been on the frontlines since the pandemic, and for covering the rising cost of pharmaceuticals and supplies. Failure to account for these costs affects our ability to adequately pay the dedicated individuals who work in our clinics and hospitals – from nurses and technicians to environmental services teams and pharmacy staff.

The challenge is that many of our insurance contracts were negotiated in pre-inflationary times. As part of our critical payer strategy, we are actively reviewing, and in many cases renegotiating, the majority of our commercial contracts with insurers. We are asking for fair and equitable increases to the rates at which we’re reimbursed.

We know negotiations can be disruptive, and we do not pursue them lightly. Our goal is to make decisions that allow us to provide the best care to our patients; increased reimbursement rates mean we can continue to do just that. We remain in network for the vast majority of commercial insurance plans and will continue providing care to anyone who walks through our hospital doors for emergency care, regardless of ability to pay.

Providence is a not-for-profit health system with a Mission to steadfastly serve all, especially those who are poor and vulnerable. Patients can learn more about how to obtain assistance from Providence with their out-of-pocket costs by visiting