The Law Office of Lynnette Ariathurai A Professional Corporation

Contract dispute regarding health clinic may affect patients

When businesses in California enter contracts with other companies, problems that develop may affect more than just those whose names are on the bottom lines. A health clinic in another state, whose contract with Regence BlueShield will expire in January 2016, is worried that nearly 70,000 patients may be adversely affected if the current contract dispute is not resolved. The clinic has apparently notified its patients by sending out a letter regarding the situation.

A clinic spokesperson said Regence BlueShield has been informed of the clinic's intent to terminate the contract between the two. A Regence representative stated the insurance company hopes that patients who carry its insurance will still be covered at the health clinic. She also mentioned her company remains very hopeful that an agreeable solution to the current contract dispute will be achieved.

Regence BlueShield has been in contract with this particular health clinic for at least 20 years. The dispute between these two companies is not the only one of its kind to make recent news. Another battle between a health care organization and an insurance company arose this past summer.

That case also took place outside California; the health care provider in question said it planned to cancel its contract with Premera Blue Cross insurance. The situation threatened to leave at least 7,000 patients without hospitals and doctors. The dispute was agreeably resolved in September. Whether Regence Blue Shield and Everett Health Clinic will obtain similar positive results in their dispute remains to be seen. Often, successful outcomes rely on experienced business and commercial law guidance.

Source:, "Contract dispute could leave Everett Clinic patients without coverage", Sharon Salyer, Nov. 11, 2016

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