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AMERICAN MEDICAL INTERN. v. BLUE CROSS

No. 88-259.

773 S.W.2d 831 (1989)

299 Ark. 514

AMERICAN MEDICAL INTERNATIONAL, INC., and St. Mary's Hospital, Appellants, v. ARKANSAS BLUE CROSS AND BLUE SHIELD, a Mutual Insurance Co., Appellee.

Supreme Court of Arkansas.

July 17, 1989.

Attorney(s) appearing for the Case

Charles R. Nestrud, Janie W. McFarlin, Little Rock, for appellants.

Robert Cabe, Little Rock, Gordon & Gordon, Morrilton, for appellee.

HOLT, Chief Justice.

Appellant St. Mary's Hospital is a wholly owned subsidiary of separate appellant American Medical International ("AMI"). In 1987, St. Mary's and AMI brought suit against appellee Arkansas Blue Cross and Blue Shield ("ABCBS") seeking a declaratory judgment as to whether ABCBS could refuse to honor patient assignments of insurance benefits to medical care providers such as St. Mary's. Summary judgment was entered in favor of ABCBS premised on a...

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