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Mass. hospital chain sues RI Blue Cross, blames insurer for failure of deal to buy Landmark

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By Felice Freyer

Steward Health Care System, the Massachusetts hospital chain that last year abandoned its plans to buy Landmark Medical Center, is suing Blue Cross & Blue Shield of Rhode Island, blaming the insurer for the deal's failure.

In a suit filed in Superior Court, Steward alleges that Blue Cross engaged in "unlawful attempted and actual monopolization" of the health-insurance market.

While the Steward deal was pending, Blue Cross and Landmark failed to reach agreement on a new contract and Landmark temporarily became an "out-of-network" hospital for Blue Cross members. This resulted, the suit alleges, in fewer patients coming to Landmark, "further damaging" the hospital's finances.

Steward is seeking unspecified damages. A Blue Cross spokesperson could not immediately be reached for comment.


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