Blue Cross Responds To Prime Healthcare's Bid Withdrawal

Prime Healthcare's allegations that they were unable to come to a contract agreement with Blue Cross Blue Shield of Rhode Island are inaccurate, according to Laura Calenda, assistant vice president of Corporate Communications for the healthcare provider.  

The announcement that Prime Healthcare had withdrew their bid for Woonsocket's Landmark Medical Center came as a surprise to BCBS of RI, according to a communication with Patch on Wednesday.

In a letter dated May 6, 2011, Prime Healthcare states that it "will advise the court that it has unequivocally accepted Blue Cross' contract proposal" from May 2nd and "looks forward to finalizing a contract or contracts with Blue Cross."

"Blue Cross & Blue Shield of Rhode Island (BCBSRI) worked actively and in good faith to come to a contract agreement with Prime, and based their correspondence with us, believed an agreement had been reached.  The first we heard anything to the contrary was this morning," Calenda said in an email.

On Monday, Prime Healthcare sent a letter to Jonathan Savage, the special master acting on behalf of  Landmark stating that the company's bid was being withdrawn because they could not reach an agreement with BCBS. The announcement leaves RegionalCare of Tennessee, the company currently in contract disputes with United Nurses and Allied Professionals, as the only remaining bidder. RegionalCare also does not currently have a contract with BCBS. 

Calenda said her company remains in contract discussions with RegionalCare and met with representatives acting on behalf of the potential buyers late last week.

Savage is reportedly in talks with additional potential buyers, although they are not permitted to make an official offer as of yet. All parties will meet with Judge Silverstein in Superior Court on May 27.