“Surgery Service Claims Blue Cross Affiliate Owes It $26M”
A health care services company on Wednesday told a Texas federal jury it’s owed more than $26 million from Blue Cross & Blue Shield of Louisiana, which it says didn’t pay claims and leveraged its hefty market share in Louisiana to shut down a promising business.
Encompass Office Solutions Inc. provides mobile surgical support for doctors performing in-office surgeries, including equipment and nurses, and contends Blue Cross cut short its entry into the Louisiana market by threatening to stop supporting doctors who wanted to use its services. It claims Blue Cross failed to pay $1.4 million in insurance claims and is seeking $25 million for the future revenue it says it lost when Blue Cross “arbitrarily” decided not to pay for its services.
Encompass attorney Bill Banowsky of Thompson & Knight LLP told jurors in his opening statement that Blue Cross controlled 60 to 70 percent of the health insurance market in Louisiana and used its strength to force Encompass out by threatening to terminate doctors who continued to use its innovative service.
“It took them 60 days to destroy a business for no reason,” Banowsky said.