One of the most turbulent payer-provider contract disputes of 2022 has recently culminated around a defamation lawsuit aimed at three health system executives and has grown to include subpoenas for communications with local news outlets, Becker’s reports.
The argument between Blue Cross and Blue Shield of Mississippi, the state’s largest insurance company, and the University of Mississippi Medical Center, the state’s largest hospital and singular provider of many services, first began in February when UMMC requested higher reimbursement rates from the payer.
No deal was ever reached and since April 1, tens of thousands of patients across the state have been left with little to no access to covered care.
But the way in which Jackson-based UMMC notified patients of the impending break is part of the reason three top executives at the hospital are now facing a lawsuit for alleged defamation.
In a March 28 brief, the hospital said, “Blue Cross is expected to force UMMC out of its network.” On social media, the hospital made posts after April 1 accusing BCBS of excluding UMMC from its network, according to court filings.
In total, the provider has spent nearly $300,000 to date on advertisements attacking BCBS over the dispute, according to Jackson Jambalaya.
On July 28, BCBS filed a lawsuit in state court accusing the hospital of leading a public relations campaign “designed to disseminate false and defamatory statements about BCBSMS to the public.” Read more.
