Bankrupt Hospital Hits Blue Cross Alabama With $250 Million Suit

Bankrupt Montgomery, Ala. hospital Jackson Hospital & Clinic Inc. sued Blue Cross and Blue Shield of Alabama, accusing the insurer of maintaining “discriminatory” reimbursement rates that threaten the health-care provider’s ability to serve the public.

Blue Cross has used a monopoly hold over commercial health insurance in Alabama to put “profits over people” and destabilize health care in the state, Jackson Hospital said in a lawsuit filed Thursday in the US Bankruptcy Court for the Middle District of Alabama.

The 344-bed hospital, which filed for Chapter 11 this year as it struggled with stagnant reimbursement rates and rising labor costs, ...