PROVIDENCE – Both parties in the Steward Health Care System LLC V. Blue Cross & Blue Shield of Rhode Island lawsuit filed for dismissal Monday, ending a lawsuit that alleged that BCBSRI conspired to keep Steward from acquiring Landmark Medical Center.
The now-settled suit alleged that Rhode Island’s largest health insurance provider entered into conspiracy with Thundermist Health Center and Lifespan to keep Steward from entering the Rhode Island market.
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The hospital had been in receivership at the time and Steward had entered into a purchase agreement, but the deal fell through as BSBSRI refused to accept the reimbursement rates at Landmark that Steward was offering. The case was filed in June 2013.
Blue Cross spokeswoman Gail Carvelli responded to a PBN request for comment on the dismissal of the suit with the following emailed statement:
“In the interest of moving forward and ending years of litigation, Blue Cross & Blue Shield of Rhode Island has reached a mutually agreeable resolution to the Steward litigation. BCBSRI continues to deny any wrongdoing and asserts that its business practices are, and have always been, fair, lawful and in the best interests of our members. BCBSRI will vigorously defend all baseless claims to the contrary.
“We look forward to continuing to fulfill our mission to improve members’ health and peace of mind by facilitating access to affordable, high-quality health care.”
Steward did not respond to PBN’s inquiries on the settlement immediately on Monday.
Steward had alleged Blue Cross violated state and federal antitrust law, and illegally interfered with contractual relations, engaging in a series of anti-competitive steps designed to block Steward’s acquisition of Landmark and its entry into the Rhode Island markets for the sale of commercial health insurance and the purchase of commercial hospital services.
Blue Cross contended that it acted legally when it refused to accept the reimbursement rates at Landmark that Steward was offering, (which the suit alleges was 5 percent below its usual rate) and otherwise operated within its rights in order to promote its business interests.
Steward Healthcare ended its pursuit of Landmark Medical Center in September 2012.
The case was scheduled to head to trial later this year, after U.S. District Court Judge William Smith dismissed BCBSRI’s motion for summary judgement on all 18 counts in the suit in April.
