Tessa Quinn
The CORE hospital in Jenks, Oklahoma, was designed for outpatient and inpatient orthopedic surgeries. However, it faced financial challenges due to a contract dispute with Blue Cross and Blue Shield of Oklahoma, the insurer that controlled a majority of the state's health insurance market. As a result, the hospital was unable to treat patients with this insurance, leading to concerns about its future. The CORE hospital was part of the Bristow Medical Center, which also faced financial struggles, and the inability to secure a contract with Blue Cross and Blue Shield threatened the survival of both hospitals. While the CORE hospital's closure was not explicitly mentioned, the inability to resolve the contract dispute and the potential fallout on the Bristow Medical Center suggest that the CORE hospital may have closed due to financial difficulties and the inability to serve a significant portion of potential patients.
| Characteristics | Values |
|---|---|
| Reason for closure | Contract dispute with Blue Cross and Blue Shield of Oklahoma |
| Date of closure | June 2025 |
| Type of facility | Orthopaedic hospital for outpatient and inpatient surgeries |
| Number of beds | 25 |
| Cost of facility | $45 million |
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What You'll Learn
- CORE hospital's contract dispute with Blue Cross and Blue Shield of Oklahoma
- The financial challenges faced by rural hospitals in Oklahoma
- The impact of losing insurance contracts on CORE's group of Tulsa orthopedic surgeons
- The potential fallout of CORE's closure on the Bristow Medical Center
- The innovative approach by CORE to support the financial stability of the Bristow hospital
CORE hospital's contract dispute with Blue Cross and Blue Shield of Oklahoma
The CORE hospital in Jenks, Oklahoma, was designed to provide inpatient and outpatient surgeries, with sought-after orthopedic surgeons and state-of-the-art equipment. However, a contract dispute with Blue Cross and Blue Shield of Oklahoma threatened its existence shortly after its opening.
Blue Cross and Blue Shield of Oklahoma declined to extend their existing contract with the Bristow Medical Center to cover patients at the new CORE hospital. This insurer controlled a significant portion of the state's health insurance market, including about 18% of the market in Tulsa and the surrounding areas. As a result, the $45 million CORE hospital was unable to treat patients with Blue Cross and Blue Shield of Oklahoma insurance, which left hospital owners concerned about its future.
Jan Winter Clark, CEO of Bristow Medical Center, opened the CORE hospital in Jenks to improve the financial stability of the Bristow Medical Center. The addition of the CORE hospital meant that the Bristow Medical Center now comprised one company with three separate medical campuses. Clark expressed frustration at the contract dispute, stating that they had followed all the rules and worked within the insurer's requests, but had not been able to reach an agreement.
Sen. Brian Bingman, R-Sapulpa, commended Clark's innovative approach to keeping the Bristow hospital financially afloat. He described the CORE hospital as a "very, very state-of-the-art facility" and acknowledged the challenges faced by rural hospitals in attracting doctors and patients. Despite the praise and potential of the CORE hospital, the contract dispute with Blue Cross and Blue Shield of Oklahoma loomed as a significant threat to its continued operation.
The inability to serve patients with Blue Cross and Blue Shield of Oklahoma insurance could have severely impacted the hospital's patient volume and financial viability, especially considering the insurer's market dominance. This dispute highlights the delicate balance between healthcare providers and insurers, where contract decisions can have far-reaching consequences for patient access and the sustainability of medical facilities.
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The financial challenges faced by rural hospitals in Oklahoma
The CORE hospital in Jenks, Oklahoma, faced financial challenges due to a contract dispute with Blue Cross and Blue Shield of Oklahoma, the insurer controlling the majority of the state's health insurance market. The inability to treat patients with this insurance threatened the hospital's financial stability and raised concerns about its future.
More broadly, rural hospitals in Oklahoma face significant financial challenges, with many at risk of closure. According to the Center for Healthcare Quality and Payment Reform, 47 out of 90 rural hospitals in Oklahoma are at risk of closing, with 23 facing immediate danger. These hospitals have experienced losses over several years without sufficient funding to offset them.
One of the primary factors contributing to the financial challenges of rural hospitals in Oklahoma is the proposed and, in some cases, implemented cuts to Medicaid. The "One Big, Beautiful Bill" is expected to result in significant Medicaid cuts, with an estimated reduction of $6.3 billion in Oklahoma alone. These cuts will disproportionately affect rural hospitals, which rely more heavily on Medicaid reimbursements to operate than their urban counterparts.
The impact of Medicaid cuts on rural hospitals in Oklahoma is exacerbated by the existing challenges these hospitals face in attracting doctors and patients. Sen. Brian Bingman acknowledged the difficulties rural hospitals have faced in recent years, and the CORE hospital in Jenks was specifically opened to bolster the financial stability of the Bristow Medical Center.
The potential closure of rural hospitals in Oklahoma has serious implications for healthcare access in these communities. Oklahoma already has one of the largest maternity deserts in the country, and further hospital closures could severely compromise obstetrics care and other essential medical services for rural residents.
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The impact of losing insurance contracts on CORE's group of Tulsa orthopedic surgeons
The CORE hospital in Jenks, Oklahoma, faced significant challenges due to a contract dispute with Blue Cross and Blue Shield of Oklahoma, one of the state's major health insurance providers. This dispute had a substantial impact on the group of Tulsa orthopedic surgeons associated with CORE, threatening their ability to treat patients and potentially affecting their financial stability.
The six orthopedic surgeons who planned to practise at CORE had established patient bases and were expected to attract many patients to the new hospital. However, without a contract with Blue Cross and Blue Shield, these surgeons risked losing a significant portion of their patient population. This could have resulted in a decrease in their revenue and disrupted the continuity of care for their existing patients.
The loss of insurance contracts also meant that the surgeons might have faced difficulties in acquiring new patients with Blue Cross and Blue Shield coverage, limiting their ability to expand their practices and serve a broader patient population. This could have had a cascading effect on the hospital's overall patient volume and financial viability.
Additionally, the contract dispute may have disrupted the surgeons' ability to provide uninterrupted care to their existing patients with Blue Cross and Blue Shield insurance. They might have had to make difficult decisions regarding patient referrals and continuity of treatment, potentially impacting patient outcomes and satisfaction.
The impact of losing insurance contracts extended beyond the surgeons' practices, potentially affecting the entire CORE hospital. With a reduced patient volume and revenue stream, the hospital could have struggled to maintain its operations, compromising its ability to provide state-of-the-art facilities and innovative approaches to rural healthcare that it had become known for.
The group of Tulsa orthopedic surgeons at the core of this situation faced significant challenges due to the loss of insurance contracts. Their ability to practise medicine, serve patients, and maintain financial stability was threatened. This situation highlights the intricate relationship between healthcare providers, insurance companies, and patient care, where disruptions in one area can have far-reaching consequences.
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The potential fallout of CORE's closure on the Bristow Medical Center
The CORE hospital in Jenks, Oklahoma, was designed to financially support the Bristow Medical Center, which had been struggling to keep its doors open since 2009. The potential fallout of CORE's closure on the Bristow Medical Center could be significant.
Firstly, the closure of CORE could result in a loss of financial stability for the Bristow Medical Center. CORE was established as a way to shore up the rural hospital financially, and its closure could lead to a decrease in revenue and increased financial challenges for the Bristow Medical Center.
Secondly, CORE's closure could impact the ability of the Bristow Medical Center to attract doctors and patients. Rural hospitals often struggle to attract medical professionals, and CORE's state-of-the-art facilities and sought-after orthopedic surgeons may have helped to draw both doctors and patients to the area. With CORE closed, the Bristow Medical Center may find it more difficult to compete with other hospitals and maintain its patient base.
Thirdly, the contract dispute with Blue Cross and Blue Shield of Oklahoma that led to CORE's closure could also have repercussions for the Bristow Medical Center. If the insurance company declines to extend its contract to cover patients at the Bristow Medical Center as well, it could further impact the hospital's financial stability and ability to serve its patients.
Finally, the closure of CORE could also result in a loss of jobs for the nearly 130 employees who worked at the hospital. This could have a ripple effect on the local economy and further impact the financial viability of the area, including the Bristow Medical Center.
Overall, the potential fallout of CORE's closure on the Bristow Medical Center is significant and could have wide-ranging consequences for the hospital, its patients, and the surrounding community. It remains to be seen how the new ownership of the hospital and the plans to build a new facility will impact the future of healthcare in Bristow.
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The innovative approach by CORE to support the financial stability of the Bristow hospital
The CORE hospital in Jenks was an innovative approach by CEO of Bristow Medical Center, Jan Winter Clark, to support the financial stability of the Bristow hospital. The Bristow Medical Center had been struggling since 2009 to keep its doors open amid financial challenges faced by rural hospitals in the state. In July 2015, Clark opened the CORE hospital, a $45 million facility designed for outpatient and inpatient surgeries, with the latest equipment and sought-after orthopedic surgeons. The new hospital was intended to be an extension of the Bristow Medical Center, creating one company with three separate medical campuses.
The CORE hospital faced a major setback due to a contract dispute with Blue Cross and Blue Shield of Oklahoma, the insurer that controlled a majority of the state's health insurance market. Despite the hospital's state-of-the-art facilities and ability to attract patients, the insurer declined to extend coverage to patients at CORE, raising concerns about the hospital's financial viability.
However, the impact of the CORE hospital's opening went beyond financial stability. The presence of the new facility and its partnership with renowned orthopedic surgeons created a "novelty" that helped attract doctors and patients to the Bristow hospital as well. This innovative approach was recognized by Sen. Brian Bingman, who praised Clark's efforts in maintaining the rural hospital's financial stability.
While the CORE hospital in Jenks faced challenges, its establishment played a crucial role in supporting the overall financial stability and reputation of the Bristow hospital. By expanding access to healthcare services and offering specialized surgical options, the CORE hospital contributed to the long-term viability of healthcare services in the rural community.
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Frequently asked questions
CORE hospital in Jenks was unable to treat patients with Blue Cross and Blue Shield of Oklahoma insurance due to a contract dispute. This put the future of the facility at risk.
The hospital owners were concerned about the future of the facility, its patients, and nearly 130 employees.
Blue Cross and Blue Shield of Oklahoma declined to extend the contract to cover patients at the new CORE hospital, potentially due to the hospital's sought-after orthopedic surgeons who could lure existing patients.
