Change of ownership from Tenet made no difference in the eyes of the court..and the hospital has to honor contracted rates throughout the end of the contract and can't charge beyond the rates agreed to with Tenet...BD
Alvarado Hospital in San Diego has lost its court battle over a contract dispute with Blue Shield of California, demonstrating how challenging it can be for stand-alone hospitals to demand higher prices for their services.
The ruling clears the way for Blue Shield members to return to Alvarado Hospital for elective procedures. The contract, which expires at the end of this year, was originally negotiated by Alvarado's previous owner, Tenet Healthcare, one of the nation's largest hospital operators. Alvarado was acquired by a group of investors led by pediatrician brothers Pejman and Pedram Salimpour of Los Angeles.
On Thursday, San Diego Superior Court Judge Richard Strauss said in a ruling from the bench that a 2006 contract remains in place even though ownership of the hospital changed hands on Jan. 1, 2007.