Davenport Osteopathic Hospital Ass'n v. Hospital Service, Inc.

The facts in this case, though somewhat involved, are without substantial dispute.

December 1950, these parties entered into a written contract. Accordingly Hospital agreed to furnish services to Blue Cross subscribers, which in turn agreed to pay Hospital. It contained a ten-day cancellation provision exercisable by either party.

Payments by Blue Cross to Hospital were to be in accord with a stated reimbursement cost formula.

Briefly stated Hospital agreed to accept tbe lesser of actual charges for services performed, or 105 percent of its computed daily cost, multiplied by the number of member…