The Care New England hospital group has selected Tufts Health Plan as the health insurer for its 3,800 employees –– a big boost for Tufts and a new twist in the dispute between the hospitals and Blue Cross & Blue Shield of Rhode Island.

Tufts reentered the Rhode Island market only a few weeks ago and officials said it expected to attract about 2,000 to 3,000 new members in its first year. But the Care New England account puts the plan way beyond that goal, because it delivers 9,000 members including employees’ dependents.

Currently, Care New England employees are covered by Blue Cross. They will switch to Tufts next year.

Care New England, which includes Kent, Butler and Women & Infants Hospitals and a visiting nurse service, has been in a prolonged, publicized contract dispute with Blue Cross concerning its patients rather than its employees.

Blue Cross and the hospital group have not been able to agree on how much Blue Cross will pay the hospitals for care provided to Blue Cross members.

If they do not reach agreement by Dec. 31, Care New England hospitals will no longer be in the Blue Cross network. Most Blue Cross members would still be able to go to those hospitals, but they would have to submit their bills to Blue Cross and pay the difference between Blue Cross rates and hospital charges.

Until the decision to switch to Tufts, Care New England’s own employees were among those facing this prospect. That, said Care New England spokeswoman May Kernan, “was a consideration.”

But, she said, the decision on employees’ health coverage was separate from the negotiations over reimbursement. “We look for the best plan at the best price,” Kernan said.

Care New England announced the decision in a news release yesterday afternoon.

“We’re certainly disappointed whenever we lose a customer, no matter how big or how small,” said Christopher J. Medici, Blue Cross spokesman. “That being said, we’re committed to ensuring a smooth transition for Care New England, their employees and their families.”

As for the reimbursement dispute, Medici and Kernan said the two sides had failed to agree on the terms of a contract extension that would have given them more time to negotiate. But talks are continuing.

Medici said that the loss of Care New England employees had no connection with Blue Cross’ decision to eliminate 74 positions, also announced yesterday.

Tufts Health Plan has also signed Citizens Bank for a national contract that it shares with Cigna. The Citizens account has roughly the same number of members as Care New England, said Brian Pagliaro, Tufts’ senior vice president of sales and client services.

Before Tufts began marketing to Rhode Island businesses, it had about 9,000 members who worked for Massachusetts companies and lived in Rhode Island. With Care New England and Citizens, Tufts has now enrolled 25,000 to 27,000 Rhode Islanders effective in January, Pagliaro said. “We’re certainly pleased that it’s going better than anticipated,” he said.

ffreyer@projo.com