PA. INS. DEPT. ET AL. v. ST. LUKES HOSP. ET AL.

Nos. 1635 and 1639 C.D. 1974.

21 Pa.Commw. 10 (1975)

The Insurance Department of The Commonwealth of Pennsylvania and William J. Sheppard, Insurance Commissioner, Appellees, v. Saint Lukes Hospital of Bethlehem, Pennsylvania, Muhlenberg Medical Center, Inc., The Allentown Hospital Association, The Palmerton Hospital, Gnadden Hutten Memorial Hospital, Allentown Osteopathic Hospital, Inc., The Allentown Sacred Heart Hospital Center, Inc., Good Shepherd Homes, Appellants. The Insurance Department of The Commonwealth of Pennsylvania and William J. Sheppard, Insurance Commissioner, Appellees, v. The Sacred Heart Hospital and Easton Hospital, Appellants.

Commonwealth Court of Pennsylvania.

August 5, 1975.


Attorney(s) appearing for the Case

James H. Stewart, Jr., with him Nauman, Smith, Shissler & Hall, for appellants.

Linda S. Lichtman, Assistant Attorney General, with him Andrew F. Giffin, Assistant Attorney General, Gerald Gornish, Deputy Attorney General, and Robert P. Kane, Attorney General, for appellees.

Argued June 5, 1975, before President Judge BOWMAN and Judges KRAMER, WILKINSON, JR., MENCER, ROGERS and BLATT. Judge CRUMLISH, JR., did not participate.


OPINION BY JUDGE MENCER, August 5, 1975:

These are appeals from the Insurance Department's refusal to approve a reimbursement contract between the Hospital Service Plan of Lehigh Valley (Blue Cross) and its contracting hospitals (appellants).1 The Act of November 25, 1970, P.L. 707, Title 40, § 6124(a), added by the Act of November 15, 1972, P.L. 1063, § 1, 40 Pa. C.S.A. § 6124(a) (Supp. 1975-76), provides:

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