Methodist Healthcare System of San Antonio Ltd LLP et al v. Blue Cross and Blue Shield of North Carolina
| Methodist Healthcare System of San Antonio Ltd LLP doing business as Methodist Hospital Northeast doing business as Methodist Hospital doing business as Methodist Hospital Texsan, KPH-Consolidation Inc doing business as HCA Houston Healthcare Kingwood doing business as HCA Houston Healthcare North Cypress, Houston-PPH LLC doing business as HCA Houston Healthcare Medical Center, Columbia Rio Grande Healthcare LP doing business as Rio Grande Regional Hospital, Orthopedic Hospital Ltd doing business as Texas Orthopedic Hospital, North Texas MCA, LLC doing business as Medical City Alliance, Columbia Medical Center of Arlington Subsidiary LP doing business as Medical City Arlington, Columbia Plaza Medical Center of Fort Worth Subsidiary LP doing business as Medical City Fort Worth, Columbia Hospital at Medical City of Dallas Subsidiary LP doing business as Medical City Heart & Spine Hospitals, a Campus of Medical City Dallas, Columbia Medical Center of Plano Subsidiary LP doing business as Medical City Plano and St Davids Healthcare Partnership LP LLP doing business as St. Davids North Austin Medical Center doing business as St. Davids Medical Center |
| Blue Cross and Blue Shield of North Carolina |
| 3:2025cv03145 |
| November 17, 2025 |
| U.S. District Court for the Northern District of Texas |
| Ed Kinkeade |
| Contract: Insurance |
| 28 U.S.C. § 1132 E.R.I.S.A. |
| Plaintiff |
Docket Report
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| Document Text |
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| Filing 16 Brief/Memorandum in Support filed by Blue Cross and Blue Shield of North Carolina re #15 MOTION to Dismiss (Drew, Michael) |
| Filing 15 MOTION to Dismiss filed by Blue Cross and Blue Shield of North Carolina (Drew, Michael) |
Filing 14
ELECTRONIC ORDER:Before the Court is Defendant's Unopposed Motion for Extension of Time to File Responsive Pleadings (Doc. No. 13). Having carefully considered the Motion, the Court finds good cause for the requested extension of time and, therefore, GRANTS the Motion. See Fed. R. Civ. P. 6(b)(1). Accordingly, Defendant shall answer or otherwise respond by May 5, 2026. (Ordered by Judge Ed Kinkeade on 4/28/2026) (chmb)
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| Filing 13 Unopposed Motion for Extension of Time to File Answer filed by Blue Cross and Blue Shield of North Carolina (Attachments: #1 Proposed Order)Attorney Michael Christopher Drew added to party Blue Cross and Blue Shield of North Carolina(pty:dft) (Drew, Michael) |
| Filing 12 WAIVER OF SERVICE Returned Executed as to Blue Cross and Blue Shield of North Carolina. Waiver sent on 2/27/2026. (Chilton, Adam) |
| Filing 11 SUMMONS Returned Executed as to Blue Cross and Blue Shield of North Carolina ; served on 1/6/2026. (Chilton, Adam) |
| Filing 10 NOTICE of Filing Exhibits to Amended Complaint re: #8 Amended Complaint filed by Columbia Hospital at Medical City of Dallas Subsidiary LP, Columbia Medical Center of Arlington Subsidiary LP, Columbia Medical Center of Plano Subsidiary LP, Columbia Plaza Medical Center of Fort Worth Subsidiary LP, Columbia Rio Grande Healthcare LP, Houston-PPH LLC, KPH-Consolidation Inc (Attachments: #1 Exhibit(s) 1 - FindCare Page, #2 Exhibit(s) 2 - FindCare, In-Network Facilities, #3 Exhibit(s) 3 - Shop Plans, #4 Exhibit(s) 4 - BlueCard Program, #5 Exhibit(s) COAs_Redacted) (Chilton, Adam) |
| Filing 9 CERTIFICATE OF INTERESTED PERSONS/DISCLOSURE STATEMENT by Columbia Hospital at Medical City of Dallas Subsidiary LP, Columbia Medical Center of Arlington Subsidiary LP, Columbia Medical Center of Plano Subsidiary LP, Columbia Plaza Medical Center of Fort Worth Subsidiary LP, Columbia Rio Grande Healthcare LP, Houston-PPH LLC, KPH-Consolidation Inc, Methodist Healthcare System of San Antonio Ltd LLP, North Texas MCA, LLC, Orthopedic Hospital Ltd, St Davids Healthcare Partnership LP LLP. (Clerk QC note: Affiliate entry indicated). (Chilton, Adam) |
| Filing 8 AMENDED COMPLAINT WITH JURY DEMAND against Blue Cross and Blue Shield of North Carolina filed by Columbia Hospital at Medical City of Dallas Subsidiary LP, Columbia Medical Center of Plano Subsidiary LP, Houston-PPH LLC, Columbia Plaza Medical Center of Fort Worth Subsidiary LP, Columbia Medical Center of Arlington Subsidiary LP, Columbia Rio Grande Healthcare LP, KPH-Consolidation Inc. Unless exempted, attorneys who are not admitted to practice in the Northern District of Texas must seek admission promptly. Forms, instructions, and exemption information may be found at www.txnd.uscourts.gov, or by clicking here: # Attorney Information - Bar Membership. If admission requirements are not satisfied within 21 days, the clerk will notify the presiding judge. (Chilton, Adam) |
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Filing 7
ELECTRONIC ORDER: The Court has "an independent obligation to determine whether subject-matter jurisdiction exists, even in the absence of a challenge from any party." Arbaugh v. Y&H Corp., 546 U.S. 500, 514 (2006) (citing Ruhrgas AG v. Marathon Oil Co., 526 U.S. 574, 583 (1999)). Plaintiffs filed their Complaint (Doc. No. 1) based on diversity jurisdiction under 28 U.S.C. § 1332(a). Accordingly, the parties' citizenship must be completely diverse in that one of the plaintiffs cannot share the same state citizenship as one of the defendants. See Corfield v. Dallas Glen Hills LP, 355 F.3d 853, 857 (5th Cir. 2003). "When jurisdiction depends on citizenship, citizenship must be 'distinctly and affirmatively alleged.'" Getty Oil Corp., a Div. of Texaco v. Ins. Co. of N. Am., 841 F.2d 1254, 1259 (5th Cir. 1988). Ten of the 11 named Plaintiffs are either a limited liability company ("LLC") or a limited partnership ("LP" or "LLP"). The citizenship of an unincorporated association is determined by the citizenship of its members or partners through every organizational layer. See Carden v. Arkoma Assocs., 494 U.S. 185, 196 (1990); Harvey v. Grey Wolf Drilling Co., 542 F.3d 1077, 1079-80 (5th Cir. 2008); see also V & M Star, LP v. Centimark Corp., 596 F.3d 354, 356 (6th Cir. 2010) (if any member of the LLC is itself an unincorporated association, such as a partnership or LLC, the court must "know the citizenship of each 'sub-member' as well."). Further, the citizenship allegations for an unincorporated association must include the identity of each member or partner as well as their citizenship. MidCap Media Fin., L.L.C. v. Pathway Data, Inc., 929 F.3d 310, 314 (5th Cir. 2019).Plaintiffs clearly understand this legal principle and generally do an exceptional job of alleging the citizenship of each unincorporated Plaintiff, particularly given that many of these Plaintiffs have several layers of members or partners. However, the allegations are inadequate with respect to four Plaintiffs--Columbia Medical Center of Arlington Subsidiary LP ("CMC Arlington"); Columbia Plaza Medical Center of Fort Worth Subsidiary LP ("CPMC Ft. Worth"); Columbia Hospital at Medical City of Dallas Subsidiary LP ("CHMC Dallas"); and Columbia Medical Center of Plano Subsidiary LP. ("CMC Plano").As for Plaintiffs CMC Arlington and CPMC Ft. Worth, they share a sub-member, Columbia North Texas Healthcare System, L.P. ("Columbia N. Tex."). Plaintiffs fail, however, to identify the partner(s) of Columbia N. Tex. See Doc. No. 1 at 4, 5. To establish the citizenship of an unincorporated association, the partners or members must be identified along with their citizenship through every organizational layer. See Carden, 494 U.S. at 196 (1990); see also V & M Star, 596 F.3d at 356. Without identifying Columbia N. Tex.'s partner(s) or their citizenship, Plaintiffs do not distinctly allege the citizenship of CMC Arlington or CPMC Ft. Worth.Turning to Plaintiff Columbia Hospital at Medical City of Dallas Subsidiary, L.P. d/b/a Medical City Heart & Spine Hospitals, a Campus of Medical City Dallas ("MC Heart & Spine"), Plaintiffs allege that MC Heart & Spine has two partners--Columbia North Texas Subsidiary GP, LLC, and Medical City Dallas Partner, LLC (the "MC Heart & Spine Partners"). Id. at 5. Plaintiffs then allege that the MC Heart & Spine Partners are LLCs "wholly owned by Columbia North Texas Healthcare System, L.P., a Texas limited partnership with its principal place of business in Davidson County, Tennessee," which "is wholly owned by Columbia-SDH Holdings, Inc., a Delaware corporation with its principal place of business in Davidson County, Tennessee." Id. at 5-6. The case law is well-established that the citizenship of an unincorporated association is determined by each of its members or partners, not necessarily its "owners." While the terms "owner" and "member" or "partner" may very well be synonymous in this instance, the allegations do not make that clear. See SXSW, L.L.C. v. Fed. Ins. Co., 83 F.4th 405, 408 (5th Cir. 2023) ("[T]here is a potentially important difference between LLC membership and LLC ownership. State law governs LLC formation and organization. Several states permit LLC membership without ownership."). Accordingly, Plaintiffs fail to establish the citizenship of MC Heart & Spine.For the same reasons as apply to Plaintiff MC Heart & Spine, Plaintiffs likewise fail to establish the citizenship of Plaintiff Columbia Medical Center of Plano Subsidiary, L.P. d/b/a Medical City Plano ("MC Plano"). Doc. No. 1 at 6 (alleging "owners" of MC Plano's two members, which are LLCs).As the parties seeking the federal forum, Plaintiffs bear the burden of establishing the Court's subject matter jurisdiction. St. Paul Reinsurance Co. v. Greenburg, 134 F.3d 1250, 1253 (5th Cir. 1998). On this Complaint, Plaintiffs fail to "distinctly and affirmatively" allege the citizenship of every party and, thus, fail to establish complete diversity. See Seguin v. Remington Arms Co., L.L.C., 22 F.4th 492, 495 (5th Cir. 2022) (quoting Getty Oil, 841 F.2d at 1259). Plaintiffs may file an amended complaint curing the jurisdictional deficiencies as identified in this Order by December 8, 2025. If Plaintiffs fail to amend or fail to do sufficiently, the Court will dismiss this case without prejudice and without further notice. Fed. R. Civ. P. 12(h); Stafford v. Mobil Oil Corp., 945 F.2d 803, 805 (5th Cir. 1991) ("Failure to adequately allege the basis for diversity jurisdiction mandates dismissal."). In cases invoking the Court's diversity jurisdiction under 28 U.S. C. § 1332(a), Rule 7.1(a)(2) of the Federal Rules of Civil Procedure requires each party to file a disclosure statement which must "name--and identify the citizenship of--every individual or entity whose citizenship is attributed to that party[.]" Fed. R. Civ. P. 7.1(a)(2) (emphasis added). Assuming they cure the jurisdictional defects identified herein, Plaintiffs shall amend their Certificate of Interested Persons/Disclosure Statement (Doc. No. 2) by December 10, 2025 to include the required citizenship disclosure statement for EACH Plaintiff. (Ordered by Judge Ed Kinkeade on 12/1/2025) (chmb)
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| Filing 6 Summons Issued as to Blue Cross and Blue Shield of North Carolina. (cfk) |
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Filing 4
ORDER: This Order governs requests to file materials in this case under seal. (Ordered by Judge Ed Kinkeade on 11/18/2025) (chmb)
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Filing 3
ELECTRONIC STANDING ORDER: This Court requires all counsel of record to review and comply with the undersigned's Judge Specific Requirements as well as the Local Civil Rules for the Northern District of Texas upon making an appearance in a matter before this Court. These can be found at # Judge Specific Requirements and # Local Civil Rules . Further, counsel shall refer to this Court's Judge Specific Requirements and the Local Civil Rules prior to calling chambers with any questions. The Court calls specific attention to Local Civil Rule 7.2(f), which addresses the disclosure of the use of generative artificial intelligence, and Local Civil Rule 83.10, which address the requirement of local counsel. (Ordered by Judge Ed Kinkeade on 11/18/2025) (chmb)
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| Filing 5 New Case Notes: A filing fee has been paid. Pursuant to Misc. Order 6, Plaintiff is provided the Notice of Right to Consent to Proceed Before A U.S. Magistrate Judge (Judge Horan). Clerk to provide copy to plaintiff if not received electronically. (cfk) |
| Filing 2 CERTIFICATE OF INTERESTED PERSONS/DISCLOSURE STATEMENT by Columbia Hospital at Medical City of Dallas Subsidiary, L.P., Columbia Medical Center of Arlington Subsidiary, L.P., Columbia Medical Center of Plano Subsidiary, L.P., Columbia Plaza Medical Center of Fort Worth Subsidiary, L.P., Columbia Rio Grande Healthcare, L.P., Houston - PPH, LLC, KPH-Consolidation, Inc., Methodist Healthcare System of San Antonio, Ltd., L.L.P., North Texas MCA, LLC, Orthopedic Hospital, Ltd., St. Davids Healthcare Partnership, L.P., LLP. (Clerk QC note: Affiliate entry indicated). (Chilton, Adam) |
| Filing 1 COMPLAINT WITH JURY DEMAND against Blue Cross and Blue Shield of North Carolina filed by Orthopedic Hospital, Ltd., North Texas MCA, LLC, Columbia Hospital at Medical City of Dallas Subsidiary, L.P., Columbia Medical Center of Plano Subsidiary, L.P., Houston - PPH, LLC, Methodist Healthcare System of San Antonio, Ltd., L.L.P., Columbia Plaza Medical Center of Fort Worth Subsidiary, L.P., St. Davids Healthcare Partnership, L.P., LLP, Columbia Medical Center of Arlington Subsidiary, L.P., Columbia Rio Grande Healthcare, L.P., KPH-Consolidation, Inc.. (Filing fee $405; Receipt number ATXNDC-15992752) Clerk to issue summons(es). In each Notice of Electronic Filing, the judge assignment is indicated, and a link to the # Judges Copy Requirements and # Judge Specific Requirements is provided. The court reminds the filer that any required copy of this and future documents must be delivered to the judge, in the manner prescribed, within three business days of filing. Unless exempted, attorneys who are not admitted to practice in the Northern District of Texas must seek admission promptly. Forms, instructions, and exemption information may be found at www.txnd.uscourts.gov, or by clicking here: # Attorney Information - Bar Membership. If admission requirements are not satisfied within 21 days, the clerk will notify the presiding judge. (Attachments: #1 Cover Sheet, #2 Summons to Defendant, #3 Exhibit(s) 1, FindCare Page, #4 Exhibit(s) 2, FindCare, In-Network Facilities, #5 Exhibit(s) 3, Shop Plans, #6 Exhibit(s) 4, BlueCard Program, #7 Exhibit(s) 5, COAs) (Chilton, Adam) |
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| Search for this case: Methodist Healthcare System of San Antonio Ltd LLP et al v. Blue Cross and Blue Shield of North Carolina | |
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| Plaintiff: Methodist Healthcare System of San Antonio Ltd LLP doing business as Methodist Hospital Northeast doing business as Methodist Hospital doing business as Methodist Hospital Texsan | |
| Represented By: | Adam D Chilton |
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| Plaintiff: KPH-Consolidation Inc doing business as HCA Houston Healthcare Kingwood doing business as HCA Houston Healthcare North Cypress | |
| Represented By: | Adam D Chilton |
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| Plaintiff: Houston-PPH LLC doing business as HCA Houston Healthcare Medical Center | |
| Represented By: | Adam D Chilton |
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| Plaintiff: Columbia Rio Grande Healthcare LP doing business as Rio Grande Regional Hospital | |
| Represented By: | Adam D Chilton |
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| Plaintiff: Orthopedic Hospital Ltd doing business as Texas Orthopedic Hospital | |
| Represented By: | Adam D Chilton |
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| Plaintiff: North Texas MCA, LLC doing business as Medical City Alliance | |
| Represented By: | Adam D Chilton |
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| Plaintiff: Columbia Medical Center of Arlington Subsidiary LP doing business as Medical City Arlington | |
| Represented By: | Adam D Chilton |
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| Plaintiff: Columbia Plaza Medical Center of Fort Worth Subsidiary LP doing business as Medical City Fort Worth | |
| Represented By: | Adam D Chilton |
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| Plaintiff: Columbia Hospital at Medical City of Dallas Subsidiary LP doing business as Medical City Heart & Spine Hospitals, a Campus of Medical City Dallas | |
| Represented By: | Adam D Chilton |
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| Plaintiff: Columbia Medical Center of Plano Subsidiary LP doing business as Medical City Plano | |
| Represented By: | Adam D Chilton |
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| Plaintiff: St Davids Healthcare Partnership LP LLP doing business as St. Davids North Austin Medical Center doing business as St. Davids Medical Center | |
| Represented By: | Adam D Chilton |
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| Defendant: Blue Cross and Blue Shield of North Carolina | |
| Represented By: | Michael Christopher Drew |
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