Northwell Health v. Blue Cross Blue Shield Massachusetts
CourtCourt of Appeals for the Second Circuit
Date FiledOctober 30, 2026
Docket25-3214
StatusUnpublished
📰 News Coverage: Read the LAWS.com news report on this case
Full Opinion
25-3214-cv
Northwell Health v. Blue Cross Blue Shield Massachusetts
UNITED STATES COURT OF APPEALS
FOR THE SECOND CIRCUIT
SUMMARY ORDER
RULINGS BY SUMMARY ORDER DO NOT HAVE PRECEDENTIAL EFFECT. CITATION TO
A SUMMARY ORDER FILED ON OR AFTER JANUARY 1, 2007, IS PERMITTED AND IS
GOVERNED BY FEDERAL RULE OF APPELLATE PROCEDURE 32.1 AND THIS COURT’S
LOCAL RULE 32.1.1. WHEN CITING A SUMMARY ORDER IN A DOCUMENT FILED WITH
THIS COURT, A PARTY MUST CITE EITHER THE FEDERAL APPENDIX OR AN
ELECTRONIC DATABASE (WITH THE NOTATION “SUMMARY ORDER”). A PARTY
CITING A SUMMARY ORDER MUST SERVE A COPY OF IT ON ANY PARTY NOT
REPRESENTED BY COUNSEL.
At a stated term of the United States Court of Appeals for the Second Circuit, held
at the Thurgood Marshall United States Courthouse, 40 Foley Square, in the City of New York,
on the 30th day of October, two thousand twenty-six.
Present:
EUNICE C. LEE,
ALISON J. NATHAN,
Circuit Judges,
MARY KAY VYSKOCIL,
District Judge.*
_____________________________________
NORTHWELL HEALTH, INC.,
Plaintiff-Appellant,
v. No. 25-3214-cv
BLUE CROSS BLUE SHIELD MASSACHUSETTS, INC.,
Defendant-Appellee.
_____________________________________
*
Judge Mary Kay Vyskocil, of the United States District Court for the Southern District of New York,
sitting by designation.
For Plaintiff-Appellant: JOHN RICHARD HORVACK, JR., Fatima Lahnin
Carmody Torrance Sandak & Hennessey LLP, New
Haven, CT.
Timothy F. Butler, Meredith McBride
Butler Tibbetts, LLC, Southport, CT.
For Defendant-Appellee: ELIZABETH HECKER
Cromwell & Moring LLP, Washington, DC.
Bryan M. Webster
Cromwell & Moring LLP, Chicago, IL.
Appeal from a December 21, 2024 judgment of the United States District Court for the
Eastern District of New York (Choudhury, J.).
UPON DUE CONSIDERATION, IT IS HEREBY ORDERED, ADJUDGED, AND
DECREED that the judgment of the District Court is AFFIRMED in part and REVERSED in
part, and the case is REMANDED for further proceedings consistent with this order.
Plaintiff-Appellant Northwell Health, Inc. (“Northwell”), one of New York’s largest
healthcare providers, appeals the district court’s dismissal of its claims against Defendant-
Appellee Blue Cross Blue Shield Massachusetts (“BCBSM”). For decades, Northwell has
participated in the Blue Cross Blue Shield (“BCBS”) insurance network 2 through its contract with
Empire Blue Cross and Blue Shield (“Empire”), BCBS’s licensee for the New York area.
Northwell’s contract with Empire, in relevant part, requires it to provide covered healthcare
services at preferential rates not only to individuals insured by Empire, but also to individuals
insured by any of the more than thirty other out-of-state BCBS licensees. Northwell has no direct
2
Although the BCBS licensees are independent entities, they cooperate in a “single electronic network for
claims processing and reimbursement” known as the BlueCard Program.
2
contracts with the out-of-state BCBS licensees, which have historically reimbursed Northwell for
services provided to their insureds through payments routed via Empire.
Northwell commenced this action against BCBSM for unpaid claims submitted between
January 2019 and December 2022. As in other cases that Northwell has brought against out-of-
state BCBS licensees, Northwell asserts breach of contract, quasi-contract, and third-party
beneficiary claims under New York law. In defense, BCBSM principally contends that it did not
sign, ratify, or otherwise manifest any intent to be bound by Northwell’s agreement with Empire,
which it contends is the sole party liable for paying Northwell’s claims. In July 2024, the district
court dismissed the case in its entirety for failure to state a claim pursuant to Federal Rule of Civil
Procedure 12(b)(6), and denied leave to amend. Following a series of post-judgment motions,
Northwell timely filed this appeal.
* * *
While this appeal was pending, this Court issued a decision in a case brought by Northwell
against several BCBS licensees operating in the Washington, D.C. capital area pursuant to
contracts that are identical to the agreement between Northwell and Empire. See Northwell
Health, Inc. v. Grp. Hospitalization & Med. Servs., Inc., 183 F.4th 78 (2d Cir. 2026). In Group
Hospitalization, we reversed the district court’s dismissal of the complaint as to Northwell’s
breach of contract and quasi-contract claims but affirmed dismissal of its third-party beneficiary
claim and denial of leave to amend. The claims in this case are materially indistinguishable from
those in Group Hospitalization. And BCBSM has conceded that that decision controls our
analysis here. See Oral Arg. Recording at 14:58–15:02. Accordingly, we reverse the district
3
court’s dismissal of Northwell’s breach of contract and quasi-contract claims and affirm the
dismissal of its third-party beneficiary claim.
Northwell’s remaining challenge is to the district court’s denial of post-judgment leave to
amend, which we review for abuse of discretion. See Mandala v. NTT Data, Inc., 88 F.4th 353,
359 (2d Cir. 2023); Metzler Inv. Gmbh v. Chipotle Mexican Grill, Inc., 970 F.3d 133, 142 (2d Cir.
2020). Because we have concluded that Northwell has stated a claim for breach of contract and
quasi-contract, its appeal of the district court’s denial of leave to amend is moot as to those claims.
As to Northwell’s third-party beneficiary claim, we have carefully reviewed Northwell’s Proposed
Second Amended Complaint and agree with the district court that its allegations do not remedy
the Amended Complaint’s deficiencies. The proposed amendments remain too generalized, fail
to plausibly allege that Northwell is the only party that could recover for breach of the relevant
agreements, and fail to identify any contract language evincing a clear intent to permit third-party
enforcement. Accordingly, we affirm the district court’s denial of leave to amend as to
Northwell’s third-party beneficiary claim.
* * *
For the reasons stated above, the judgment of the district court is AFFIRMED as to the
dismissal of Northwell’s third-party beneficiary claim and denial of leave to amend. We
otherwise REVERSE the district court’s judgment and REMAND to the district court for further
proceedings on Northwell’s breach of contract and quasi-contract claims.
FOR THE COURT:
Catherine O’Hagan Wolfe, Clerk of Court
4