Steward Accuses Blue Cross Of Blocking $40M Hospital Deal

Law360, New York (May 2, 2013, 3:24 PM EDT) -- Private equity-owned Steward Health Care System LLC on Wednesday hit Blue Cross Blue Shield of Rhode Island with an antitrust suit in state court, alleging the insurer had blocked a $40.1 million hospital acquisition deal to maintain its market power in the state.

According to Boston-based Steward — a for-profit health system owned by private equity firm Cerberus Capital Management — BCBS negotiated a reimbursement agreement with Woonsocket, R.I.-based Landmark Medical Center in bad faith, leading to an in-principle deal to acquire the bankrupt hospital and a...
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