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REHAB. CENTER, INC. v. BLUE CROSS & BLUE SHIELD

Docket Nos. 78-1823 thru 78-1830.

93 Mich. App. 357 (1979)

287 N.W.2d 237

REHABILITATION CENTER, INC. v. BLUE CROSS & BLUE SHIELD OF MICHIGAN ALLEN PARK CONVALESCENT HOME, INC v. BLUE CROSS & BLUE SHIELD OF MICHIGAN NIGHTINGALE WEST, INC v. BLUE CROSS & BLUE SHIELD OF MICHIGAN VENOY CONTINUED CARE CENTER v. BLUE CROSS & BLUE SHIELD OF MICHIGAN WESTLAND CONVALESCENT CENTER v. BLUE CROSS & BLUE SHIELD OF MICHIGAN

Michigan Court of Appeals.

Decided November 5, 1979.

Attorney(s) appearing for the Case

Cook & Pringle, P.C., for plaintiff Rehabilitation Center, Inc.

Barris, Sott, Denn & Driker (by Eugene Driker, Stephen E. Glazek and Barbara Shaw Harvey), for plaintiff Allen Park Convalescent Home, Inc.

David Lebenbom, P.C., for Nightingale West Inc.

Bellanca, Beattie & DeLisle, for Venoy Continued Care Center, Inc.

Frimet, Goren & Bellamy, P.C. (by Alan G. Gilchrist), for Westland Convalescent Center.

Frank J. Kelley, Attorney General, Robert A. Derengoski, Solicitor General, and Harry G. Iwasko, Jr., and Louis J. Porter, Assistants Attorney General, for defendant Commissioner of Insurance.

Before: BASHARA, P.J., and BEASLEY and J. DANER, JJ.

BASHARA, P.J.

In 1966, Blue Cross and Blue Shield of Michigan instituted a convalescent and long-term illness care (CLTC) program. Its purpose is to provide skilled nursing care to patients who would otherwise require hospitalization at a significantly higher cost. In order for a nursing home to qualify for participation in the program, it must be accredited by the Joint Commission on Accreditation of Hospitals.

Plaintiffs are nursing homes which have contracted...

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