PONTIAC, Mich. – Today a jury of seven found that Blue Cross Blue Shield of Michigan breached its agreement with TheraMatrix Physical Therapy over a program at Ford Motor Company that would have saved the auto company millions of dollars in healthcare costs and also interfered with TheraMatrix’s business relationship with Chrysler Motor Co.
“We are very appreciative of the jury’s attention and their time devoted to this matter and feel vindicated that they have found BCBSM breached its contract with us that would have lowered the healthcare costs at Ford Motor Company by millions of dollars, and then interfered with our business relationship with Chrysler Motor Co. to do the same,” said Robert Read, president and COO of TheraMatrix.
The jury acknowledged that BCBSM used anti-competitive and predatory practices while claiming they were the benevolent healthcare provider of Michigan. BCBSM has been mandated by the state of Michigan to offer affordable healthcare and the trial proved that when TheraMatrix presented a program to save millions at Ford the contract was breached by BCBSM and that BCBSM then went on a mission to put TheraMatrix out of business to avoid further competition.
The jury awarded TheraMatrix $4.1 million for breach of contract and approximately $450,000 for tortious interference. The trial took place in the courtroom of Judge Edward Avadenka of the Oakland County Circuit Court.
TheraMatrix has been an outpatient physical therapy company since 1981, specializing in cost-saving solutions for Fortune 100 customers and the government. BCBSM is the largest and most powerful nonprofit healthcare corporation in Michigan, enjoying tax-exempt status, as granted under Act 350, in exchange for its promise to provide quality, affordable healthcare to Michigan residents. In 2009, BCBSM generated $21.6 billion in revenues.
TheraMatrix is represented by Rodger D. Young and Sara Klettke MacWilliams of Young &
Susser, P.C. and Joel Serlin of Seyburn, Kahn, Ginn, Bess and Serlin, P.C.
