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Family Care Network to drop insurer, could strand PeaceHealth employees

Cutoff has 'dire implications,' family member says

Cedar Anderson, an ICU nurse, walks toward the front doors of the hospital.
Staff walk outside PeaceHealth St. Joseph Medical Center in March 2022. PeaceHealth employees who get medical care from Family Care Network will need to find another provider after this year. FCN will not renew its contract with PeaceHealth's insurance provider. (Hailey Hoffman/Cascadia Daily News)
By Ralph Schwartz Staff Reporter

PeaceHealth employees who receive medical care from Family Care Network must scramble to find another provider by the end of the year, after learning that FCN will no longer accept their insurance. 

FCN informed patients in a letter this week that it made “the difficult decision” to end its contract with United Healthcare, one of the biggest medical insurers in the U.S., effective Jan. 1, 2024. All PeaceHealth workers who haven’t opted out of coverage are insured by United Healthcare, said Bev Mayhew, PeaceHealth senior director of marketing and communications. 

PeaceHealth has some 3,500 employees in Whatcom County and another 475 in Skagit County. Mayhew wouldn’t say how many employees receive care from FCN, citing privacy concerns. 

“I can share that it is a significant number of caregivers and their dependents,” Mayhew said.

A PeaceHealth employee’s spouse, who was granted anonymity by Cascadia Daily News because of fears of retaliation, said “folks are upset throughout the (PeaceHealth) system.”

The employee receives medical care at FCN.

“This has dire implications for my wife, who suffers from a complex health condition,” the employee’s spouse said. “If she doesn’t get a new doctor and assessment by the end of the year when the contract expires, she will lose access to critical medication that has saved her life.”

FCN’s decision to drop United Healthcare affects an estimated 4,000–5,000 patients overall, said Michele Anderson, the provider’s communications director.

FCN is smaller than PeaceHealth, with about 500 employees, but has a big reach: It cares for about 100,000 patients at 15 clinics and urgent care centers in Whatcom and Skagit counties.


FCN made the decision to sever ties with United Healthcare “so we can focus on contracts with organizations that support our efforts to provide quality, cost-effective care,” Anderson said. 

Elaborating on FCN’s decision, CEO Rodney Anderson said it was not about how much United Healthcare paid to the care provider in reimbursements.

“Providing outstanding care and an outstanding patient experience requires a strong partnership between FCN and the payer,” Anderson said. “‘Partnership’ includes clear communication, timely and effective problem solving, a shared vision for serving the local community and a willingness to innovate to achieve that vision.”

United Healthcare did not return a phone call seeking comment.

Mayhew said all local PeaceHealth employees were expected to receive an email on Wednesday, Aug. 9 acknowledging their concerns.

The email also will express “hope” that FCN and United Healthcare reach an agreement for 2024, Mayhew said.

Some people with knowledge of PeaceHealth employees’ predicament said they might seek medical care from PeaceHealth itself, which could add more stress to a system already struggling to see patients in a timely manner. PeaceHealth staff have reported three- to four-month wait times at some clinics.

Mayhew couldn’t say whether PeaceHealth could handle the influx if its own employees sought medical care there.

“We are beginning to plan for this scenario and thankfully have several months before the deadline,” she said.

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