Printer Friendly

SIERRA TUCSON COMPANIES INC. ANNOUNCES LAWSUIT ? AGAINS T UE CROSS BLUE SHIELD OF ARIZONA

 SIERRA TUCSON COMPANIES INC. ANNOUNCES LAWSUIT ? AGAINS


T

UE CROSS BLUE SHIELD OF ARIZONA
 TUCSON, Ariz., July 14 /PRNewswire/ -- Sierra Tucson Companies Inc. (NASDAQ: STSN) todaing, group boycott, conspiracy to monopolize and interference with business relationships. The lawsuit was filed by Sierra Tucson's counsel, Brown & Bain, in response to a notice received from Blue Cross Blue Shield of Arizona Inc., terminating the Standard Institution Participation Agreement with Sierra Tucson effective Jan. 4, 1993.
 Sierra Tucson alleges that Blue Cross Blue Shield of Arizona Inc. has entered into an unlawful agreement with the other members of the Blue Cross and Blue Shield Association nationwide to fix reimbursement levels for substance abuse and mental health services. The complaint alleges that Blue Cross Blue Shield of Arizona is a participant in a nationwide boycott of Sierra Tucson's facility and that the members of the conspiracy are illegally attempting to fix prices through agreements among competitors to set reimbursement rates for all Blue Cross subscribers who are treated outside their home state. The complaint also alleges conspiracy to monopolize mental health and substance abuse treatment programs by eliminating or restricting payment to programs such as Sierra Tucson that compete with the mental health marketing subsidiary owned by Blue Cross Blue Shield of Arizona.
 Attorney Robert Allen, lead counsel for Sierra Tucson from the Phoenix firm of Brown & Bain, a nationally recognized law firm specializing in antitrust litigation, stated: "The agreements between Blue Cross of Arizona and other members of their Association constitute an unlawful boycott. We believe Sierra Tucson will prevail in its claim against Blue Cross and we are committed to making that happen."
 William T. O'Donnell Jr., chairman and president of the company, stated, "Sierra Tucson seeks to make available quality treatment to patients who are covered by Blue Cross Blue Shield. We have been unable to reconcile our differences with Blue Cross Blue Shield through negotiation. It is apparent that this action is necessary in order to begin to remedy what has become a national problem. On behalf of our present, former and future patients, we are committed to assuring that our programs, which have been successful in meeting patient needs, remain available and that the patients receive the coverage without unlawful agreements to limit their available health care options."
 -0- 7/14/92
 /CONTACT: George H. Daranyi, Esq., legal affairs of Sierra Tucson, 602-792-5800/
 (STSN) CO: Sierra Tucson Inc.; Blue Cross Blue Shield of Arizona ST: Arizona IN: HEA INS SU: JL-CH -- LA023 -- 9215 07/14/92 15:31 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jul 14, 1992
Words:420
Previous Article:RAYTHEON WINS HAWK UPGRADE CONTRACT
Next Article:THE VADER GROUP ANNOUNCES THIRD (JUNE) QUARTER 1992 RESULTS
Topics:


Related Articles
U.S. HEALTHCARE RECEIVES $3 MILLION FROM BLUE CROSS AND BLUE SHIELD OF MISSOURI IN SETTLEMENT OF LAWSUIT
SIERRA TUCSON COMPANIES INC. ANNOUNCES LAWSUIT AGAINST BLUE CROSS BLUE SHIELD OF ARIZONA
SIERRA TUCSON COMPANIES INC. ANNOUNCES RESOLUTION OF BLUE CROSS OF ARIZONA LAWSUIT
SIERRA TUCSON COMPANIES INC. ANNOUNCES NEW MARKETING DIRECTOR
SIERRA TUCSON COMPANIES, INC. ANNOUNCES REDUCTION IN WORK FORCE
SIERRA TUCSON COMPANIES INC. ANNOUNCES AFFILIATION WITH THE UNIVERSITY OF ARIZONA
Blue Cross Blue Shield of Arizona Introduces Wellness Program to Help Arizonans 'Step Up' Their Level of Physical Activity; New Fitness Plan Designed...
Medicare Approves ScriptSave's National Prescription Drug Discount Card; Major Health Plans, Healthcare Organizations, Employers and Hospital Groups...
BCBSAZ and UMC Team Up to Enhance Trauma Care in Rural Arizona.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters