Tue March 22, 2011
Landmark sues Blue Cross Blue Shield
By MEGAN HALL
Providence, RI – Financially troubled Landmark Medical center is suing Blue Cross Blue Shield of Rhode Island. The lawsuit seeks higher reimbursement rates from the health plan.
The documents filed in superior court allege that Blue Cross Blue Shield's payments to Landmark are unreasonable and in violation of Blue Cross's charitable nonprofit mission.
Landmark spokesman Bill Fischer says the reimbursement rates are a major cause of Landmark's financial woes.
"The under reimbursement from Blue Cross is the significant if not the primary factor in Landmark's fiscal situation," he says.
In a written statement, Blue Cross says shortfalls in Medicaid and Medicare payments are the real source of the hospital's financial troubles and it's unfair to ask the company and its members to make up the difference.
Blue Cross's reimbursement rates were a factor in the Caritas Christi hospital chain's decision not to purchase Landmark.
Friday is the deadline for potential owners to bid on the hospital.
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