Lubbock, Texas

Patients that are the most vulnerable truly lie at the core of Covenant Health’s non-profit mission. Our ability to serve this community is significantly shaped by our partnerships with insurance companies. Since December 2024, we’ve been engaged in good faith negotiations with Texas Blue Cross Blue Shield for a new agreement.

Through these discussions, Covenant aims to secure fair contract terms. However, Texas Blue Cross Blue Shield has hesitated to provide adequate reimbursements for essential healthcare services. This is particularly concerning, as over 140,000 individuals could find themselves without in-network access to Covenant hospitals and providers in Texas once the contract expires on July 31, 2025. Families in 20 counties looking for care at Covenant Medical Group, Grace Clinic, and affiliated hospitals will be impacted.

We genuinely care about our neighbors and friends covered by these contracts and want to ensure they have continuous access to care. Yet, it’s crucial to emphasize that proper reimbursement is necessary, especially given the rising costs due to inflation, global supply chain disruptions, and a significant shortage of healthcare personnel.

Healthcare costs are climbing for a variety of reasons. Since 2022, we’ve seen staffing costs increase by 10%, drug prices rise by 7%, and medical supplies go up nearly 15%.

The contract aims to tackle these rising costs, but the challenge is considerable. Insurance companies like Blue Cross Blue Shield in Texas need to work together with health systems like ours to maintain affordable local care for patients.

Texas Blue Cross Blue Shield, which is part of Healthcare Services Corporation (HCSC), stands as the largest health insurance provider in Texas and the fifth largest in the U.S. Despite increasing premiums by over 23% and benefiting financially, the number of available providers has remained low.

When the contract is no longer in the network, Blue Cross Blue Shield might suggest alternative providers to its members. However, many of these providers are already overwhelmed and cannot accommodate more patients.

From mid-September 2024 to May 2025, Covenant Health Emergency Departments treated 348 patients from the Blue Advantage (BAV) network, which includes around 20,000 members. Alarmingly, only three patients could be transferred to UMC, largely due to issues like bed shortages and staffing constraints. This raises concerns about UMC’s capacity to handle transfers from a much larger PPO/HMO population of about 140,000 members.

Blue Cross Blue Shield has proposed that healthy patients seek care outside their communities. This perspective seems disconnected from what is genuinely needed to provide care in West Texas and falls short of community expectations. It’s not reasonable to push patients to find healthcare far from home, which goes against Covenant Health’s mission to provide high-quality care nearby.

“We’re committed to offering a broad array of services,” said Dr. Amy Thompson, CEO of Covenant Health’s Lubbock Service Area. “We hope that Texas Blue Cross Blue Shield understands the urgency of this situation and collaborates with us to keep healthcare accessible and affordable for everyone in our community.”

No matter their insurance status, community members can continue to access our contracted emergency department. If a medical emergency arises, immediate care is always a priority.

Our doors are open to all, and we will continue to welcome patients covered by Texas Blue Cross Blue Shield. However, if an appropriate and sustainable reimbursement rate isn’t agreed upon before the contract expires on August 1, 2025, it will no longer be in the network for Blue Cross Blue Shield members. That said, our contracted physicians will still manage medication requests during this period of change and continue addressing patient needs.

The contract remains active with most commercial insurance companies. For details about your coverage level, refer to the Insurance and Health Plans from Providence.

If you have questions or need assistance, our contracting teams are available from 8am to 5pm, Monday to Friday, at (806) 725-6663.