Prime Healthcare hospitals will stay in-network with Blue Cross and Blue Shield of Illinois, after months of uncertainty

Prime Healthcare, which owns eight Illinois hospitals, will remain in-network with the state’s largest health insurer, Blue Cross and Blue Shield of Illinois for now, following months of uncertainty over whether the two companies would reach a contract agreement, the health system announced Thursday evening.

Had they been unable to reach an agreement, Prime would have been out-of-network for people with Blue Cross and Blue Shield of Illinois health insurance, which would have meant those patients would have had to find new doctors who took their insurance or, in some cases, pay more for care. The current agreement will now continue into next year.

Blue Cross and Blue Shield of Illinois sent letters to members in March informing them that Prime would be out-of-network starting June 1.  

“Our hospitals and medical group remain in network with BCBSIL and we appreciate the recognition of the important role they play in providing care for communities,” Prime said in a statement. “Patients will continue to have uninterrupted access and no impact to costs, as ensuring health equity and access are values we work to protect.”

Prime said in a news release that Blue Cross and Blue Shield of Illinois “will correct previously issued termination notices related to the June 1 date.”

Blue Cross and Blue Shield of Illinois did not immediately provide comment Friday morning.

Health systems and insurers periodically renegotiate contracts that dictate how much insurers will pay health systems for medical services, in exchange for a health system being included in an insurer’s network.  

Prime bought the eight Illinois hospitals from nonprofit Ascension in March 2025 for more than $370 million. Prime is a for-profit company based in California and has more than 50 hospitals across the country.

Prime’s Illinois hospitals include Holy Family Medical Center in Des Plaines, Mercy Medical Center in Aurora, Resurrection Medical Center in Chicago, St. Francis Hospital in Evanston, St. Joseph Medical Center in Joliet, St. Joseph Hospital in Elgin, St. Mary’s Hospital in Kankakee and St. Mary of Nazareth Hospital in Chicago.

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