Financially Troubled Rhode Island Hospital Sues BCBS For Underpayments

Landmark Medical Center in Woonsocket, R.I., is suing Blue Cross Blue & Blue Shield of Rhode Island, claiming the payor contributed to the hospital's financial problems by paying the hospital too little to cover costs, according to a Providence Journal report.

The suit, filed in Providence Superior Court, contends the hospital is powerless against BCBS' "monopoly" strength and has been forced to accepted payments small enough to "threaten Landmark's very existence," according to the report.

The suit asks the court to order BCBS to negotiate reasonable rates, pay Landmark an unspecified amount for past underpayments and compel the insurer to reduce administrative expenses.

BCBS has denied their involvement in the hospital's financial problems, saying Landmark is fairly compensated, according to the report. The insurer also asserted that Landmark wants BCBS to compensate for the "years of mismanagement" within the hospital.

Read the Providence Journal report on Landmark Medical Center and Blue Cross & Blue Shield of Rhode Island.

Read about other lawsuits involving hospitals:

- 6 Lawsuits Involving Hospital CEOs

- California Hospital Pays $125K to Settle Patient Dumping Allegations

- California's John Muir Health Settles Latex-Allergy Discrimination Suit for $340K


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