BILOXI, MS (WLOX) - Ten hospitals in Mississippi have filed a lawsuit against Blue Cross Blue Shield of Mississippi, including Biloxi Regional Medical Center. The hospitals say the insurance company wrongfully reduced inpatient payments it was obligated to make for medical services provided to patients.
The lawsuit also alleges Blue Cross Blue Shield of Mississippi breached its contracts with the hospitals by not paying the hospitals in accordance with the terms of those contracts.
"The people of Mississippi need hospital services and we are here to render those services. But it is unfair for insurers like Blue Cross Blue Shield to not honor the amount they agreed to pay," Bill Williams, Division CEO for these hospitals stated. "That may benefit the insurance company and its executives, but it harms our hospitals and the communities we serve."
The lawsuit seeks to recover more than $13 million in alleged underpayments. It was filed in the Circuit Court of Hinds County, Mississippi.
Other hospitals named as plaintiffs in the suit include: Central Mississippi Medical Center in Jackson, Crossgates River Oaks Hospital in Brandon, Gilmore Regional Medical Center in Amory, Madison River Oaks Medical Center in Canton, Natchez Community Hospital in Natchez, Northwest Mississippi Regional Medical Center in Clarksdale, River Oaks Hospital in Flowood, Tri-Lakes Medical Center in Batesville and Woman's Hospital in Flowood.