Providence Health & Services said it notified Premera Blue Cross this afternoon that it wouldn’t be renewing its commercial contracts in Washington state for 2017.

Starting Jan. 1, 2017, Providence, Swedish, PacMed, and Kadlec hospitals and health care facilities won’t accept Premera commercial health insurance. Medicare Advantage contracts won’t be affected, the health provider said.

However, a letter from Colleen Wadden, senior director of reputation management at Providence, says it’s possible for Providence to develop a new contract with Premera in the future.

According to the Journal of Business’s 2016 Book of Lists, Premera had 263,000 enrollees in Eastern Washington as of last October.

Wadden says in the letter that the two parties reached a compromise for a short-term agreement for 2016 during contract negotiations last year, but they have been unable to come to terms for the upcoming year. Providence said it wants to address rates, standard contract terms across the system, and development of a quality incentive program.