$55M Suit Claims Blue Cross Shorted Texas Hospitals

Law360, New York (May 24, 2012, 7:02 PM EDT) -- Blue Cross and Blue Shield of Georgia Inc. withheld payments for health services after claiming they would be covered, two hospitals allege in a suit seeking at least $55 million in damages that was removed to Texas federal court Wednesday.

Innova Hospital San Antonio LP and Victory Medical Center Houston LP launched the suit in Texas state court in April, alleging that the insurer verified coverage for various members but later wholly denied their claims or reduced the payments to an unacceptable rate.

The medical centers,...
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