As of July 31, Covenant Health announced they successfully reached a new contract agreement with BlueCross BlueShield of Texas, This agreement ensures that over 140,000 individuals will maintain in-network access to Covenant’s hospitals and healthcare providers throughout Texas. As a result, this agreement will benefit individuals and families across 20 counties seeking care at Covenant Medical Group, Grace Clinic, and all Covenant hospitals.
A press release from Covenant Health stated, “We appreciate BlueCross BlueShield’s commitment to collaborating with Covenant Health in delivering affordable and accessible healthcare to our members. Covenant Health remains dedicated to providing exceptional healthcare services to our patients and serving the communities of West Texas and eastern New Mexico.
“Thank you for entrusting Covenant Health with your healthcare needs. We are honored to serve you.”
A previous press release made on July 24 stated the organization had been working on a new agreement between the entities since Dec. 2024.
The release highlighted the rising costs of healthcare which can be attributed to a variety of complex and interrelated factors. Since 2022, Covenant has seen a 10% increase in staffing costs, a 7% increase in pharmaceutical costs and an almost 15% increase in medical supplies.
“Insurance companies, like Blue Cross Blue Shield of Texas, need to be part of the solutionworking with health systems like ours to keep local care affordable for their patients,” stated in the July 24 release.
While Covenant is working every day to combat the rising costs of care, the company emphasized it cannot be done alone.
“We care deeply about our neighbors and friends we serve who are covered by these contracts and want to ensure continuity of care. At the same time, adequate reimbursement is essential as inflation, global supply chain disruptions and the severe shortage of health care personnel have driven up the cost of caring for patients,” said Bruce White, Chief Executive Officer Rural Service Area.