Jackson Hospital suffered a setback in federal bankruptcy court on Wednesday.
Jackson Hospital filed a lawsuit in December against Blue Cross and Blue Shield over alleged “unfair reimbursement rates.”
United States Bankruptcy Judge Christopher Hawkins denied on Thursday a preliminary injunction request filed by Jackson Hospital to force Blue Cross and Blue Shield to pay higher reimbursement rates.
“The mechanism the Hospital seeks to employ - a preliminary injunction pursuant to which a Court rewrites a contract and imposes terms of performance on a party that it did not agree to - is antithetical to the public interest,” Hawkins said in his ruling.
Sophie Martin, a spokesperson for Blue Cross and Blue Shield, said in a statement, “Blue Cross and Blue Shield of Alabama appreciates the court’s ruling.”
“This decision supports our responsibility to protect our customers – the nearly two million members here in Alabama who depend on us for access to high‑quality, affordable healthcare. That said, we very much want Jackson Hospital to remain open and continue providing care to patients, and we remain hopeful that a solution can be found,” Martin said.
The hospital has said it is at risk of closing starting next week if its reimbursement rates do not change.
A spokesperson for Jackson Hospital didn't return a request for comment.
To connect with the author of this story or to comment, email [email protected].
Don't miss out! Subscribe to our newsletter and get our top stories every weekday morning.
