(Boston Globe) Steward Health Care System, which terminated an agreement to buy a Woonsocket, R.I., hospital last fall, charged in a lawsuit Wednesday that Rhode Island’s largest health insurance company blocked the deal by failing to negotiate reasonable health care payments.
In a complaint filed in state Superior Court in Providence, Steward, which runs a chain of hospitals and doctors groups across Eastern Massachusetts, alleged Blue Cross & Blue Shield of Rhode Island engaged in anticompetitive practices and interfered with prospective contractual relations to thwart Boston-based Steward’s proposed acquisition of Landmark Medical Center.
Steward, owned by the New York private equity firm Cerberus Capital Management, demanded a trial by jury and asked for Blue Cross & Blue Shield to pay unspecified financial damages as well as reimburse its attorneys’ fees involved in taking the court action.
Representatives of Blue Cross & Blue Shield, which failed to agree on a contract with Landmark after it signed a pact to be bought by Steward, released a statement saying they would defend themselves against the suit and were confident they will prevail.
“At a time when Rhode Island is focused on assuring access to quality health care for all residents, lowering costs and increasing collaboration in the provider community, Blue Cross & Blue Shield of Rhode Island is disappointed with Steward’s decision to file a lawsuit,” Michele Lederberg, the insurer’s general counsel and chief administrative officer, said in the statement.
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