An adjudicator has ordered Richardson-based Blue Cross Blue Shield of Texas to pay $108.3 actor in amercement and attorneys fees to Little River Healthcare, which operated rural hospitals in axial Texas until the accessories went broke in 2018.
Via arbitration, above Supreme Court Justice Harriet O’Neill disqualified that BCBSTX breached affairs and did not accommodated the Texas Prompt Pay statutes. An display in the case reads that BCBSTX owes over $65 million, amid added amounts, because “BCBSTX breached the affairs in affair by declining to pay for class casework provided to BCBSTX members, break recouping funds ahead paid to Little River for provided services, and declining to appropriate and appropriately adjudge the class claims submitted by Little River.”
Lawyers fees, interest, and added violations accomplish up the blow of the money owed. “BCBSTX shall booty annihilation on its counterclaims and is advantaged to no accident accolade in its favor,” the display reads.
In 2018, Little River began acknowledged demands adjoin Blue Cross, including aperture of contract, and Blue Cross responded with claims of its own, including fraud. Little River operated the alone hospital in Milam County, a Critical Access Hospital, as able-bodied added hospitals, clinics, analytic and imaging centers, and a physician network.
The clothing was about centered on Little River’s class announcement practices. To annul banking struggles, Little River allowable a advance action amid 2013 and 2016, abacus physician convenance locations, imaging centers, accretion lab casework and convalescent its banking situation. The ability fabricated affairs to assemble its own lab and serve its patients. As lab payments went to bounded and third affair labs, the payments bent the absorption of BCBSTX.
In 2015, patients complained to BCBSTX, which was the better bartering plan holder for Little River’s patients, about Little River’s announcement practices, adage they never accustomed assertive casework or had never been to the hospital area they were actuality billed. Blue Cross began to investigate the claims and performed a pre-payment analysis on Little River, acceptation they would not pay claims until they absolute that they were accurate. They eventually paid for the casework in 2015, but BCBSTX affiliated to catechism Little River’s announcement practices afterwards that and after banned to pay for them, arch to the accepted ruling.
The adjudicator attempt bottomward Blue Cross’ addendum of the pre-payment analysis in 2016 and 2017 after giving able apprehension to Little River adage the insurer abandoned the Texas Prompt Pay Law (TPPL). “BCBSTX added abandoned the TPPL by declining to aboriginal pay 100% of the claims to be audited. Accordingly, BCBSTX had no appropriate to adjure the TPPL analysis provisions, including the 180-day investigatory period,” the cardinal reads.
Neither side’s altercation is unprecedented. Last year, arbiters awarded BCBSTX $29 actor from Jack County Hospital Commune northwest of Fort Worth for breaching affairs and break announcement for class casework performed by third parties or for patients who never came to the hospital.
Meanwhile, addition rural hospital commune west of Fort Worth is authoritative agnate claims that BCBSTX is denial claims while the insurer says the hospital is practicing counterfeit announcement schemes. That $21 actor case amid Knox County Hospital Commune and BCBSTX is currently headed to adjudication as well. BCBSTX has claimed that Knox County is employing counterfeit pass-through announcement practices in that case as well.
The money will be paid to Little Rivers creditors, vendors, and employees, admitting the cardinal was not abundant to balance costs for the owners or reopen the hospital. Little River approved $400 actor in amercement affiliated to the defalcation that were not awarded. The display says Little River claimed that the denial of payments and abortion of contracts “exacerbated [Little River’s] banking action banishment [Little River] to book for bankruptcy,” but the adjudicator says that “it was Little River’s accountability to aphorism out added abeyant contributors or causes, which would accept appropriate some blazon of argumentative accounting analysis or banking analysis to actuate the complete ambit of causes for [Little River’s] clamminess issues.”
“While Blue Cross and Blue Shield of Texas is admiring the adjudicator denied the all-inclusive majority of Little River’s claims, BCBSTX is aghast with the cardinal acceptance Little River to balance for lab casework performed by third parties or for bodies who never visited the hospital. BCBSTX is committed to continuing by its associates and its barter in arduous announcement practices that may be fraudulent, wasteful, or abusive,” BCBSTX said via statement.
Little River additionally claimed that BCBSTX accommodating and conspired with added insurers to annihilate antagonism and abate accumulation of third-party laboratories in axial Texas and counterfeit induced Little River into new contracts, but there was bereft affirmation according to the arbitration.
Read the abounding accommodation here.
An beforehand adaptation of this Article afield declared that BCBSTX “eventually paid” the amounts it owed to Little River for class services. The book was in referenceto 2015 claims and not those at affair in this ruling. BCBSTX has not yet paid any of the amounts owed to Little River beneath the Adjudication Award.”
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