California Court Orders New Trial In Anthem Rate Dispute With Children’s Hospital

On June 10, 2014, the 5th District Court of Appeal in Fresno, California ordered a new trial in Children’s Hospital Central California v. Anthem Blue Cross of California, to settle damages to reflect the value of services delivered between July 31, 2007 and June 1, 2008, when the hospital and the Anthem were negotiating over new rates. The appellate court reversed the trial court decision that originally allowed the hospital to charge its list prices, and awarded the hospital $6.6 million.

For 10 months in 2007, the hospital and insurer were unable to reach an agreement to renew . . .