Background -Remember these were labs that Michael Honea pitched back in 2016. I did an open records request for this settlement late in 2023 and the AG answered the request a few weeks ago. This settlement amount, from Blue Cross Blue Shield does not account for any other costs Glen Rose Medical Center made, for example, to any attorneys, to work on this. I spoke briefly with Honea in the hallway of the Somervell County courthouse and he said the amount settled was less than they had hoped for.
From the Feb 27, 2024 Somervell County Hospital District meeting, CFO report
Rough draft watch the video for exact wording.
Trend of the hospital on month to month basis. .. For the most part, we’re doing about the same today as last year. Had one extraordinary entry to last year and that was the impact of the Blue Cross settlement to operations, not surgical. Previous to the settlement we had reported bad debt on the unpaid BC claim. We have to do that because frankly, collect-ability was in question. .. Michael and the attorneys were able to get to a settlement of about 5.2 million dollars. One of the caveats of that settlement was that we had to take whatever monies were necessary, in essence pay ourselves for claims that BC had not paid for back to January of 22.. We had a one time only reduction in our bad debt allowance of about 2 milllion dollars and any change that occurs on the balance sheet .. we’re going to be dealing with that variance this year versus last year till we get past Sept 1, then that transaction falls off, it will never go away but we won’t be seeing the impact of it.
Don’t forget that Ron Hankins said in September, 2019 that he wasn’t even sure that what the hospital was doing was legal, guess he didn’t consider that when Honea first came up with the idea (and he is an attorney-hah)
From Oct 31, 2019, where Ray Reynolds, then CEO of Glen Rose Medical Center, talked about getting legal services to get reimbursed by Blue Cross Blue Shield.
Presumably, then, one would need to subtract the amount paid for the attorney from the amount received from BCBS.
