Hospital sues BCBS of Alabama over reimbursement amid bankruptcy

Montgomery, Ala.-based Jackson Hospital filed a lawsuit against Blue Cross and Blue Shield of Alabama over its reimbursement rates, according to a Dec. 18 complaint in the U.S. Bankruptcy Court for the Middle District of Alabama.

Jackson Hospital is in the middle of its own bankruptcy proceedings. In the lawsuit, Jackson Hospital claimed the insurer reimburses at roughly 120% of Medicare. The hospital is seeking damages in excess of $250 million and a court order to raise rates, at least to the level of Montgomery, Ala.-based Baptist Medical Center.

“Blue Cross Alabama did what it always does: Value profits over people,” the complaint said…

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