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Landmark files lawsuit against Blue Cross Blue Shield

March 22, 2011

The Special Master for Landmark Medical Center in Woonsocket has filed a complaint in Superior Court against Blue Cross Blue Shield of Rhode Island.  The reason?  According to the filing, Blue Cross isn’t paying the hospital enough money for its services.

The complaint asks the court to compel Blue Cross to

  • “Negotiate in good faith” for fair reimbursement rates to the hospital
  • Pay “monetary damages” to compensate Landmark for its low reimbursement rates in the past
  • Reduce its administrative expenses and accumulation of wealth

The complaint argues that Blue Cross’s payments to Landmark are  in violation of the health plan’s charitable and non profit mission.

Blue Cross reimbursement rates were the main reason given for Caritas Christi’s decision not to purchase Landmark Medical Center after more than a year of negotiations.  It is probably no coincidence that this Friday is the deadline for potential owners to bid on the hospital.

Blue Cross Blue Shield of Rhode Island says it plans to offer a response within the next half hour.

2 Comments leave one →
  1. ThomasWheatley permalink
    March 27, 2011 4:10 pm

    Will it produce $$$$ to fund the growing cash shortfall?
    I think not!


  1. As Landmark turns… « The Pulse: health care in RI

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