Flushing Hosp. & Med. Ctr. v. Woytisek

In Flushing Hosp. & Med. Ctr. v. Woytisek (41 N.Y.2d 1081 [1977]), the estate of a Blue Cross subscriber sought to be billed by the plaintiff hospital at the same rate as Blue Cross, which had contracted with the hospital for a lower rate. The Court of Appeals stated that "for whatever may be the reasons--volume of payments, promptness in paying, assurance of payment or otherwise--Blue Cross is entitled to what amounts to a very substantial discount with respect to its 50% of the regular charges. The subscriber, however, is not entitled to derive any economic benefit from this independent arrangement between the hospital and Blue Cross" (at 1082-1083).