Jackson Hospital & Clinic Inc. ramped up its legal campaign against Blue Cross and Blue Shield of Alabama, alleging the insurer has unlawfully retained $1.4 million in patient reimbursement funds during the Montgomery, Ala., hospital’s bankruptcy.
Blue Cross repeatedly violated Jackson’s Chapter 11 legal protections from May to late July when it withheld payments in order to offset a $1.5 million loan the insurance company provided in 2023, the hospital said in a complaint filed Monday in the US Bankruptcy Court for the Middle District of Alabama.
Jackson Hospital had elected to repay the loan through remittance reductions between October ...
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