After nearly a decade, Kaiser Permanente has ended its exclusive relationship with Memorial Health System and will allow thousands of Southern Colorado customers to be treated in-network at Penrose-St. Francis Health Services as well.

In 2000, Kaiser put Penrose hospitals out of its network. For thousands of people insured by the nonprofit health plan, that meant Memorial was the one place to go in Colorado Springs for having babies, surgery, car crashes, or any other hospital-related care if they wanted to minimize their out-of-pocket expenses.

On Friday, Kaiser signed a three-year contract with Centura to bring Penrose hospitals back into the fold.

Kaiser, the state’s largest nonprofit health plan, insures 43,000 residents in southern Colorado.

Penrose hospitals were considered in-network for Kaiser patients from 1997 to 2000. Kaiser spokeswoman C.J. Moore said the decision to partner solely with Memorial was strictly based on economics and was not a judgment about who provided better care. Having one contract, she said, ensured that the insurer got better rates for services.

Today, market demands have changed, she said, and partnering with Penrose made financial sense. Negotiations began when Kaiser reached agreements with Centura hospitals in Pueblo and Cañon City. Centura oversees Penrose as well.