California Hospitals Sue Anthem, Alleging Delays Cost Billions

Blue Cross of California‘s failure to coordinate necessary longer-term care after hospital stays contributes to backlogs and at least $3.25 billion in preventable costs annually, alleged a suit filed Tuesday in California state court.

The insurance provider, which does business as Anthem Blue Cross, allegedly breaks California law by failing to arrange inpatient rehabilitation stays and other services, while leaving hospitals in the state to pick up the tab for longer-than-necessary stays, according to the complaint filed in Los Angeles County Superior Court.

About 4,500 patients wait in California hospitals and emergency rooms every day, even after they’ve been ...