Anthem Blue Cross Blue Shield and the Christ Hospital, based in Cincinnati, could split if the two sides cannot reach a contract agreement by April 1.
According to a statement on the Christ Hospital's website, the negotiations affect Anthem commercial, Medicare Advantage and Medicaid members.
In its statement, the health system said it has been impacted by inflation and rising labor costs.
"The terms Anthem/BCBS has currently proposed would significantly impact our ability to provide the nationally ranked patient experience and exceptional clinical care that our community deserves and for which we are well known," the system said in its statement.
If an agreement is not reached, the Christ Hospital's physician practices would be out of network for Anthem members on May 1, and its hospital facilities would be out of network on April 1.
The Christ Hospital operates a 555-bed hospital in Cincinnati and over 100 outpatient centers and clinics.
In a statement on its website, Anthem said the payer continues to negotiate in good faith with the Christ Hospital.
"We understand that, like hospital systems across the country, Greater Cincinnati health systems are also facing difficult labor shortages and economic challenges," the company said in its statement. "That's why we are committed to reaching an agreement that addresses those needs and protects our members' access to affordable care."