American Medical International, Inc. v. Arkansas Blue Cross & Blue Shield

Jack Holt, Jr., 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 right to disallow assignments. St. Mary’s brings this appeal. We reverse.

St. Mary’s Hospital admitted several patients in…