CHA News Article

California Supreme Court Extends Deadline for Deciding Whether to Review Hospital Case Against Blue Cross

Last week, the California Supreme Court extended its deadline from Sept. 16 to Oct. 16 to decide whether to grant review in the Children’s Hospital Central California v. Blue Cross California case. The case arose from a dispute between the hospital and Blue Cross of California over the basis for calculating the amount Blue Cross owed the hospital for authorized post-stabilization emergency services provided to beneficiaries enrolled in Blue Cross’s Medi-Cal managed care plan while the hospital and Blue Cross were not in contract. After a trial court awarded $6.6 million plus interest to the hospital, Blue Cross appealed. The Court of Appeal then ruled that the trial court had committed reversible error in preventing Blue Cross from developing and presenting at trial evidence of the scope of rates accepted by or paid to the hospital by other (contracted) payors and the state (Medi-Cal rates). The hospital then petitioned the Supreme Court to review the matter. CHA filed an amicus letter in support of the hospital’s petition.

The court’s extension of its deadline does not necessarily indicate the court is likely to grant review, but does allow it more time to consider whether to do so.

CHA will continue to keep members apprised of any developments in this case.