Steward Health Trustee Sues Insurers Over Rejected Medical Claims

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A trustee for the fallen Steward Health Care System LLC has filed several lawsuits against a group of insurers and healthcare plan entities, seeking to recover at least $57 million in reimbursements that were allegedly wrongfully denied to Steward's hospitals across Texas, Florida, Ohio, and other states.

Why it matters

The legal action highlights ongoing challenges facing healthcare providers in getting insurers to properly reimburse them for services rendered, which can create financial strain and impact patient care. Steward Health Care System filed for bankruptcy in 2021, and this lawsuit is part of the trustee's efforts to recover funds owed to the failed system.

The details

The trustee, Mark Kronfeld, alleges that Blue Cross and Blue Shield of Florida Inc. and several other insurance entities failed to properly reimburse Steward's hospitals for over 26,000 medical claims. The lawsuits seek to compel the insurers to turn over the owed reimbursements.

• Steward Health Care System filed for bankruptcy in 2021.
• The trustee filed the lawsuits against the insurers on Tuesday and Wednesday in the U.S. Bankruptcy Court for the Southern District of Texas.

What’s next

The judge overseeing the bankruptcy case will need to rule on the trustee's lawsuits against the insurance companies.