SHOW LOW, Ariz. — Two significant developments are heightening concern about women’s healthcare and patient safety in Arizona’s White Mountains.
Blue Cross Blue Shield of Arizona (BCBSAZ) has ended its contract with MomDoc, one of the state’s largest OB/GYN provider groups, which has been safely serving patients in Show Low for over four years and was founded in 1976.
Effective December 1, 2025, patients in Show Low and around the state will no longer be able to present their Blue Cross insurance for payment at MomDoc. The move follows more than two years of unsuccessful negotiations over what MomDoc describes as “unsustainable reimbursement rates.”
The decision comes just as Summit Healthcare Regional Medical Center, the only viable alternative for women with Blue Cross — the area’s only full-service hospital — received a “D” safety grade for Fall 2025 from The Leapfrog Group. This national nonprofit assesses hospitals on infection control, surgical safety, and error prevention.
MomDoc Contract Termination Follows Reimbursement Dispute
In a press release on Tuesday, MomDoc CEO Nick Goodman said the company could no longer afford to continue subsidizing “underpaying commercial plans.” He noted that Arizona has 15.3 percent fewer OB doctors delivering babies than a decade ago, and that commercial insurers like Blue Cross typically reimburse about 20 percent less than Medicaid for comparable services.
“MomDoc needs to continue partnering with plans that compensate properly so we can recruit high-quality OB doctors to the state,” Goodman said. “We can no longer subsidize underpaying commercial plans.”
Medicaid/AHCCCS pays better than most Arizona commercial plans, which is backwards from most states. Usually, commercial plans like BCBS reimburse 20% higher than Medicaid to help subsidize the government payor. No longer can MomDoc afford to subsidize underpaying commercial plans, they stated.
MomDoc, which operates 17 locations statewide, including in Show Low, said, “all Blue Cross–insured patients will retain access to their records and receive help transitioning to other providers. They can also decide to pay out of pocket for services if they wish to remain at MomDoc.”
The separation was described as the result of failed efforts to reach “fair and sustainable reimbursement rates that reflect the rising cost of delivering quality healthcare.”
Summit Healthcare Rated “D” for Fall 2025
Adding to the region’s healthcare concerns, Summit Healthcare Regional Medical Center received a “D” grade in the Fall 2025 Leapfrog Hospital Safety Report.
Leapfrog’s twice-yearly safety grades, based on federal and survey data from the Centers for Medicare & Medicaid Services (CMS), evaluate hospitals on up to 30 safety metrics — from infection prevention and surgical safety to medication management and error reporting.
A “D” represents one of the lowest possible grades and indicates a significant risk in patient safety performance compared to national benchmarks. According to Leapfrog’s scoring scale, “D”-rated hospitals perform below average in critical safety domains, including infection control and hospital error transparency.
Leapfrog emphasizes that the grade does not necessarily reflect overall medical quality or patient outcomes, but rather the systems hospitals have in place to prevent avoidable harm.
Broader Implications for Rural and Women’s Health
The timing of Blue Cross’s contract termination with MomDoc and the only alternative, Summit Hospital, underscores the growing instability in Arizona’s healthcare infrastructure, especially in rural communities.
Arizona continues to face one of the nation’s most severe physician shortages, particularly in women’s health and obstetrics. Many providers report that commercial reimbursement has lagged far behind rising operating costs and inflation, making recruitment and retention increasingly difficult.
Goodman said insurers have long relied on the assumption that Arizona remains a “low-cost” state for providers — an assumption he says no longer holds true.
Arizona, and especially the White Mountains region, is experiencing an OB doctor shortage, with few doctors willing to pay the higher cost of living in the mountains and juggle a lower wage than they could earn in another state.
“There are many factors contributing to this,” said Goodman. “These include shorter careers, more work/life balance for doctors, retirements, and not enough physicians being trained. Those are the national issues.
MomDoc said they will continue negotiating with Blue Cross and hope this loss to the White Mountain community is only temporary.
“Our patients are at the heart of every decision we make,” said Goodman. “We will continue to advocate for fair compensation that protects access to high-quality women’s healthcare in Arizona.”
With Blue Cross ending its contract with MomDoc and Summit Healthcare being the alternative option with a “D” rating, families across the White Mountains are entering an uncertain future. For rural women, the loss isn’t just about convenience — it’s about safety.
Contact Blue Cross Blue Shield at 1-800-232-2345 and your HR department, and tell them you want Show Low to have access to reliable women’s health care.
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