Hospitals Skirting Iowa Review Law, Insurer Says

Law360, New York (February 8, 2007, 12:00 AM EST) -- Health insurance giant Wellmark Inc. has filed an action against three Iowa hospitals, claiming that their plans to build new facilities do not qualify a state law that allows renovation projects to skirt a review by the state Department of Public Health.

Wellmark, widely known as Wellmark Blue Cross and Blue Shield, alleges that Catholic Health Initiatives-Iowa Inc., Central Iowa Hospital Corp. and St. Luke’s Jones Regional Medical Center are planning to build three new hospitals, while hiding under the auspice of renovations.

Iowa’s Certificate of...
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