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Judge OKs Landmark, BC/BS agreement

September 14, 2012

WOONSOCKET – After thinking it over for two days, Superior Court Judge Michael Silverstein on Friday approved an agreement ending a contract dispute over reimbursement rates between Landmark Medical Center and Blue Cross.
The memorandum of understand brings Landmark back into the Blue Cross coverage network following the expiration of the parties’ last contract on July 17.
Citing the hospital’s precarious financial situation, Silverstein said the memorandum of understanding will strengthen the hospital in the short run and lead to enhanced long-term stability for the hospital, which is in the process of being sold to the Steward Health Care system.
The memorandum extends the prior agreement with Blue Cross until Dec. 31.
In court on Wednesday, Landmark’s lawyers said it had little choice but to accept the agreement because the hospital needs cash from Blue Cross to remain financially viable. Steward opposed the deal, saying it didn’t want to be locked into a contract with unfairly low reimbursements for medical procedures performed at Landmark after the sale was completed.

Read more in our print edition.

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