Dispute Between Insurer and Hospital Has Patients Rattled
The New York Times
May 30, 2006

Quoted: Michael D. Brown

Michael D. Brown is representing Jamaica Hospital in their dispute with Oxford Health Plans in State Supreme Court in Queens. Issues began to arise back in 2004 when Oxford, having agreed to a new contract that increased rates paid to the hospital, refused to sign the new contract and pay the new rates. In addition, Oxford attempted to coerce Jamaica Hospital into persuading a group of their anesthesiologists into joining the health insurer's network of physicians. According to the Times article, "the crux of the dispute is that Oxford is illegally punishing the hospital for refusing to strong-arm doctors into accepting Oxford's rates."

The situation deteriorated in early April 2006 when Oxford, in an unprecedented move, issued notice to its patient members that effective May 2, 2006; they would no longer be covering the cost of care given by doctors at Jamaica Hospital. Doctors with privileges at Jamaica Hospital also received notice of Oxford's intentions to withdraw as a network provider. The Times noted that Oxford's actions would result in a loss of revenue for the hospital and that "even a small loss could be critical." It was at this point that Jamaica Hospital sought relief from the Court and as a result, Oxford agreed to keep doing business with Jamaica until the issues could be resolved.