William Olson
Chief Executive, Providence Oregon
Ben LeBlanc, M.D.
Chief Executive, Providence Medical Group Oregon
As we recently shared, Providence is renegotiating many of our payor contracts, seeking fair and equitable increases to keep up with the rising cost of care. Unless an agreement is reached, our Cigna contracts in Oregon, which were negotiated in pre-inflationary times, will end June 30, 2023, affecting about 17,000 people in our state.
Providence recently offered Cigna an extension of the contract through the end of 2023 to allow additional time for employers and members to make alternative plans, but Cigna rejected that offer.
Providence’s expenses for labor, pharmaceuticals and supplies have risen nearly 20% since the pandemic began, leading to record losses. On the other hand, Cigna’s profits jumped 24% last year, with operating earnings of $6.7 billion in 2022, and $9 billion in shareholder dividends and stock buybacks. Despite earning these profits, Cigna has refused to agree to rates that would help us meet the needs of patients and strengthen our workforce.
Providence cares deeply about our patients who are covered by these contracts, and we are committed to helping with out-of-pocket expenses for those who qualify for financial assistance. Despite Cigna’s refusal to cover the cost of providing care to its members, we remain committed to working collaboratively to reach an agreement and avoid disruption for our patients.
We will continue to keep you updated if there is a breakthrough in our stalled negotiations with Cigna. Thank you for your ongoing commitment to serving those in need with excellence and compassion.
