Michigan rehab agency sues Blues over broken contract
Rehab Regs, August 8, 2008
TheraMatrix Physical Therapy, a Pontiac, MI rehab agency, is suing Blue Cross Blue Shield of Michigan after the insurer allegedly terminated TheraMatrix as a participating provider and stripped the rehab agency from all of its physician referral lists, the Oakland Business Review reported Monday.
TheraMatrix, which is seeking more than $10 million in damages, claims it had an agreement with Blue Cross Blue Shield to create a cost-saving outpatient PT program for Ford Motor Co. employees, according to the Oakland Business Review. Because the program would have generated less income for Blue Cross Blue Shield, the insurer deemed TheraMatrix a competitor and terminated the agency as a participating provider, TheraMatrix claims in the suit.
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